PART B (80 marks) Question 1 (14 marks) The Longley Corporation Ltd is considering whether to introduce activity based costing to determine the cost of each of its four products. The company is currently using a conventional costing system whereby overhead costs are allocated on the basis of the number of direct labour hours. The table below provides information in relation to the cost of each of the products and the extent to which each of the products consume various IBSOUI'CCS. PRODUCTS Output (units) RESOURCE USE PER UNIT Raw Materials (kilograms) Labour Hours Machine Hours UNIT PRODUCTION COSTS Raw Materials Direct Labour OVERHEADS Machining (per hour) Engineering Set-ups Component Receipts Orders Packaged Distribution Deliveries Required: 230000 90000 53000 $920000 $ 1260000 $530000 $40000 $400000 $300000 $260000 (a) Calculate the cost of each of the four products if the conventional costing approach is used