Zany Brainy Corp. manufactures two types of lamps, Home size and Industry size lamps. Company produces 15,000 Home size lamp and 5,000 Industry size lamps. Following is the data provided about these two products:

	Home size lamp	Industry size lamp	Total
Direct Materials per unit	$7	$12
Direct manufacturing labour rate per unit	$12.00	$12.00
Direct labour hours per unit	0.50	0.6
Set up costs			$120,000
Lamps produced per patch	200	50
Set up hour per patch	1	3
Quality control costs			$160,000
Total indirect manufacturing costs			$280,000
Annual production	15,000	5,000

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1. The companys simple (traditional) costing system uses a single indirect-cost pool and allocates costs to the two lamps on the basis of direct manufacturing labour-hours. Under this tradition system, determine total product cost per unit of each of the company's two products. (10 marks)

2. The companys ABC system uses two indirect-cost pools. One cost pool is for set up costs and the other for quality control. Zany Brainy allocates set up costs to the two lamps based on setup labour-hours and quality control costs based on direct manufacturing labour-hours. Under ABC system, determine total product cost per unit of each of the company's two products. (25 marks)