WXY Ltd. manufactures two types of massagers, deluxe massagers and standard massagers. The annual output of deluxe massagers and standard massagers is 50,000 and 20,000 respectively. Both products require two hours of direct labor to complete. Therefore, the total number of direct labor hours per year is 140,000 [2 hours. x (50,000 + 20,000)]. The annual manufacturing cost is estimated to be RM1,050,000. Thus, the predetermined overhead rate is RM7.25 (RM1,015,000/ 140,000) per direct labor hour. The direct material cost per unit for a deluxe massager is RM43, and the standard massager is RM12. The direct labor costs of the deluxe and the standard massagers are both RM14 per unit. The company's managers have identified six activity cost pools and related cost drivers, and accumulated overhead expenses according to the cost pools, as shown below. Expected Use of Drivers by Product Standard Deluxe Activity Cost Pool Cost Driver Purchasing Receiving Assembling Testing Finishing Packing & shipping Orders Pounds Number of parts Number of tests Units Pounds Expected Estimated Use of Cost Overhead Drivers RM 126,000 400 70,000 20,000 444,000 74,000 115,000 23,000 140,000 70,000 120,000 80,000 1,015,000 200 4,000 18,000 5,600 22,500 18,000 200 16,000 56,000 17,400 47,500 62,000 Required: a) Under traditional product costing, calculate the total unit cost of the two products. Prepare a simple comparison schedule of individual costs by product. (4 marks) b) Under activity-based costing, prepare a schedule showing the computations of the activity- based overhead rates (per cost driver). (3 marks) c) Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers (including the calculation of overhead cost per unit, rounded to the nearest cent.) (9 marks) d) Compute the total cost per unit for each product under activity-based costing to the nearest cent. (4 marks) Comment on (1) the comparative overhead cost per unit for the two products under activity-based costing, and (2) the comparative total costs per unit under traditional costing and activity-based costing. e)