Wool Mark Ltd. manufactures three types of products namely P, Q and R. The data relating to a period are as under: Particulars P Q R Machine hours per unit 10 18 14 Direct Labour hours per unit @ Rs. 20 4 12 8 Direct Material per unit (RS.) 90 80 120 Production (units) 3,000 5,000 20,000 Currently the company uses traditional costing method and absorbs all production overheads on the basis of machine hours. The machine hour rate of overheads is RS. 6 per hour. The company proposes to use activity based costing system and the activity analysis is as under: Particulars P O R Batch size (units) 150 500 1,000 Number of purchase orders per batch 3 10 8 Number of inspections per batch 4 3 The total production overheads are analyzed as under: Machine set up costs 20% Machine operation costs 30% Inspection costs 40% Material procurement related costs 10% Required: i. Calculate the cost per unit of each product using traditional method of absorbing all production overheads on the basis of machine hours. ii. Calculate the cost per unit of each product using activity based costing principles