Two products A and B are made using similar equipment and methods.

The data for last period are: Product A Product B

Units produced 6 000 8 000

Labour hours per unit 1 2

Machine hours per unit 4 2

Set-ups in period 15 45

Orders handled in the period 12 60

Overheads for period

$ Cost Driver

Relating to production set-ups 179 000 Set-ups in period

Relating to order handling 30 000 Orders handled in the period

Relating to machine activity 55 000 Machine hours per unit

264 000

Calculate the overheads to be absorbed per unit of each product based on: An ABC approach using suitable cost drivers