Teach Dya Limited makes three main products, using broadly the same production methods and equipment for each. A conventional product costing system is used at present, although an Activity-Based Costing system is being considered. Details of the three products for a typical period are: Hours per unit Materials per Volume unit (units) Labour hours Machine RM hours Product X 1 20 750 Product Y Product Z 1 1 12 1,250 1 3 25 7,000 Direct labour costs RM6 per hour and production overheads are absorbed on a machine hour basis. The rate for the period is RM28 per machine hour. Further analysis shows that the total of production overheads can be divided as follows: % Costs relating to set-ups 35 Costs relating to machinery 20 Costs relating to materials handling Costs relating to inspection 15 30 100% The following activity volumes are associated with the product line for the period as a whole. Total activities for the period: Number of set-ups Number of movements of materials Number of inspections Product X 75 12 150 Product Y 115 21 180 Product Z 480 87 670 670 120 1,000 Required: (a) Calculate the cost per unit for each product using conventional methods. (5 marks) (b) Calculate the cost per unit for each product using Activity-Based Costing. (10 marks) (c) Comment on the reasons for any differences in the costs in your answers to (a) and (b)