A) TRADITIONAL COSTING SYSTEM Sarver Company makes 4,000 units of Product A and 20,000 units of Product B each year. The company currently has a traditional cost system in which direct labour-hours is used to assign overhead cost to products. The predetermined overhead rate is: Predetermined = Estimated Manufacturing overhead Overhead Rate Estimated Direct labour-hours Product A requires 2.5 DLH and Product B requires 2.0 DLH. Additional information for these products is given below. Required: What are the product costs for each product under the traditional costing system? Suppose that overhead costs are actually caused by the five activities listed below with their resulting total costs, rather than by direct labour-hours. Required: 1. Calculate the activity rates for Sarver using the ABC method. 2. Determine the total cost of Product A and Product B using Activity-Based Costing