You are required:

$($a$)$ to prepare a summary which shows the budgeted product cost per unit for each of the

products $x,Y$ and Z for the period ending $31$ December $2022$ detailing the unit costs

for each cost element:

$($i$)$ using the existing method for the absorption of overhead costs and

$($ii$)$ using an approach which recognises the cost drivers revealed in the activity$-$

based costing investigation;

$($b$)$ to explain the relevance of cost drivers in activity$-$based costing. Make use of figures

from the summary statement prepared in $($a$)$ to illustrate your answer.