a.

Determine the unit cost of each product using traditional activity-based costing. Show your calculations.

b.

Determine the unit cost of each product using time-determined activity-based costing. Show your calculations.

c.

Explain why the unit costs differ between requirements a and b.

d.

Assume that Magnum Company produces 30 different products in a complex manufacturing environment involving many more than four activities. Which of the two costing methods would you recommend, and why?