b)TakulahCo. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:

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 activity-based costing?(5 marks)

iii) Would you recommend a change to ABC costing for this company? Justify your answer(2 marks)