Refer to the facts presented in P5-3. The activity-based costing study revealed the following revised cost estimates:

Predetermined overhead rate based on cost per ton \(\$ 300\) Cost to change molds between batches of product \(\quad 700\) Cost to apply cement lining (per pipe) 100 Note: Total costs for traditional and \(\mathrm{ABC}\) are the same \((\$ 191,875)\).

\section*{Required}

A. For each product, calculate the activity-based cost of production.

B. Prepare a table with four headings as follows: Product, Traditional Cost, Activity-Based Cost, Percentage Change (defined as follows: \([\mathrm{ABC}\) cost - traditional cost \(] \div\) traditional cost). Complete the table using your calculations from P5-3 and part (A) of this problem.

C. What can you learn about overhead consumption across the product classes? Explain.
D. What types of decision alternatives might management consider in light of the new cost information?