MS manufactures three types of skincare product for sale to retailers. MS currently operates a standard absorption costing system. Budgeted information for next year is given below:

Fixed production overheads are absorbed using a direct material cost percentage rate.The management accountant of MS is proposing changing to an activity-based costing system. The main activities and their associated cost drivers and overhead cost have been identified as follows:

Further details have been ascertained as follows:

Required:Calculate for each product:(i) The total fixed production overhead costs using the current absorption costing system;(ii) The total gross profit using the proposed activity-based costing system.

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Collagen Anti-ageing Facial masks fillers Total cream ($000) ($000) ($000) ($000) Products Sales 60000 38000 22000 120000 22000 Direct material 11800 6200 4000 Direct labour 3700 2400 1900 8000 Fixed production 15 400 overheads Gross profit 74600 Facial Anti-ageing Collagen fillers cream masks Production and sales (units) 1000000 1200000 600000