Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The company relies on activity based costing system. Products Media pad Yoga pad
Units of Production 5,000 4,000
Direct labor hours 500 350
Number of orders placed 35 25
Machine setup hours 35 35
No. of Deliveries 48 40
No. of production runs 22 15

Machine set up costs 38,800
Machine running costs 48,800
Procurement costs 48,800
Delivery costs 37,800

Required:
a. You are required to calculate the cost per unit of Media pad and Yoga pad under ABC and Traditional costing method.
b. Compare the cost per unit of production and suggest which costing method is good.