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Question 2 {11 marks] a] Discuss the circumstances that would require a business to change from traditional costing to ABC costing? [2 marks] b] Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activitybased costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine setups 15 45 $ 10,300 Assembly parts 3,000 3,000 144,600 Packaging pieces 500 400 55.350 Machine hour per unit 4 3 Production volume 7'50 1,500 Required: i] How much overhead would be allocated to each unit under the traditional allocation method? [2 marks] ii) HOW much overhead would be allocated to each unit under activitybased costing? [5 marks] iii] Would you recommend a change to ABC costing forthis companyhustify |{our answer [2 marks] SHOW YOUR WORKING