Question 3 (20 marks) Kitchen Products Ltd makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labour cost of $25. It also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labour cost of $45. Currently the company is using the traditional costing method to allocate and apply the manufacturing overhead at a rate of $125 per machine hour. In a recent meeting, the management has recommended using the activity-based costing to determine the product costs to enhance its competitive advantage in the market. The management accountant has identified three cost pools, and the overhead for each cost pool is as follows: Machine setups $ 5,000 Machine processing 6,000,000 Material requisitions 25,000 Total overhead $ 6,030,000 The cost driver for each cost pool and its expected activity is as follows: Machine setups Machine hours Parts requisitions Gas 100 45,000 360 Electric 150 105,000 140 Total 250 150,000 500 3-a) determine the total cost per unit foe each product using traditional costing method b) determine the total cost per unit foe each product using activity based costing method C) based on calculations in a and b, comment on the differences under the two costing systems