2. ABC Inc. manufactures several different products including product X and product Y. ABC uses activity- based costing, such that the total manufacturing overhead for the month, of $750,000, is assigned to the following cost pools with the corresponding activity levels: Cost Pool Activity Cost Driver Setups $ 100,000 100 no. of setups Maintenance 250,000 1,250 machine hours Packing and shipping 400,000 200 no. of deliveries The following information for products X and Y for the current month is available: X Y No. of units produced 100 100 Sales Price per unit S 3,300 $ 3,400 Direct material cost 5 200,000 200,000 Direct labor cost (at $10 per hr) $ 20,000 30,000 No. of setups 8 Machine hours 350 250 Deliveries 20 25 If ABC were to use a single, predetermined overhead rate of $40 per direct labor hour, how much would each product (X and Y) cost? b. Using activity-based costing, how much does each product (X and Y) cost?c. If there is a difference between your answers to (a) and (b), why is this? What costs are driving the difference? d. Which answer (a) or (b) should ABC use in decision-making? And why is it better for decision-making? e. What might management do to increase the profits of ABC? (Focus on the activities ABC should be managing better.)