a) Calculate the overhead rate for Letus Play Toys Ltd. using the traditional costing system.

b) Calculate the overhead cost per unit that will be allocated to the 3 products using the traditional costing system.

c) Calculate the overhead rate per cost driver for the four activities:	Estimated Overhead Costs	Total Expected use of cost driver	OH Cost/driver

d) Calculate the expected overhead cost per unit for the 3 products

e) Compare the overhead cost per unit using the two systems and comment on the differences.

f) Is it advisable for Letus Play Toys Ltd. to switch from Traditional costing to activity based costing? Why or why not?

g. Describe one additional piece of information that you would need to have before making any recommendation to Letus Play on which cost allocation system to use

Letus Play Toys Ltd. produces three toys: action figures, fashion dolls and transforming robots. The production operation is highly automated. Letus Play is thinking about switching to an activity based costing system from its traditional costing system that assigns overhead on the basis of machine hours. Letus Play has prepared an activity dictionary and gathered the following information concerning its level of production, the activities, the activity usage and the activity costs for one month