Question 2 Two products, A and B, are made using similar equipment and methods. The data for last period are: Units produced Labour hours per unit Machine hours per unit Set-ups in period Orders handled in the period Overheads for Period Relating to production set-up Product A Product B 6.000 8 000 1 2 4 2 15 12 46 45 60 179 000 Relating to order handling 30 000 Relating to machine activity 55 000 264 000 A. Calculate the overheads to be absorbed per unit of each product, based on: i. absorption costing using labour hour absorption rate. (7 marks) ii. an ABC approach using suitable cost drivers. (9 marks) B. Give TWO (2) advantages and TWO (2) disadvantages of the ABC System. (4 marks) (Total 20 marks)