2 - Activity Based Costing Ashton Auto Ltd uses a job order costing system and has been traditionally applying overhead to cost of production using a traditional method based on direct labour hours as a cost driver. The company would like to trial an activity-based costing system for the company to use in the future has now decided to trial activity based costing and has supplied the following information about overhead activities and costs. Activity Cost driver Activity - Total cost Cost driver Total number Repairs and maintenance Material handling Machine hours Materials used, kg $222,000 8,000 $105,000 175,000 Setting up equipment Number of setups $38,900 620 Supervision Direct labour hours $242,500 14,400 TOTAL OVERHEAD $608,400 The company has an order for 150 units of product K007. Direct costs per unit of K007 are: Direct Material $15 and direct labour $8 per unit (20 minutes at $24 per hour). Other information relating to the production of the 150 units of K007 is as follows: Machine hours 30 Materials used, kg 75 Number of setups ww 3 Direct labour hours 50 Required: Calculate the Product Cost for each unit of of product K007 under both methods ( Traditional vs ABC)