Accounting questions

BB Company manufactures two products, Currently, the company uses a traditional costing system assigning overhead on the basis of direct labor hours. The company's total overhead costs is dollar 720, 000. The company produces 8,000 units of the product and 1,000 units of the industrial product. Under the traditional costing system, the per unit price and costs are already computed for you as follows: Since the traditional costing system computes based on only the labor hour cost drivers to allocate the overhead costs. You are worried that the current cost accounting system may be providing inaccurate and would like to implement an ABC system. Assume that the company's overhead costs were traced to four major activities. The amount of overhead costs traceable to each activity for the current year is provided below: Using the ABC system, determine the total cost per unit for each of the 2 products. I will be looking for the following items in your computation to arrive at the total cost per unit for each of the 2 products overhead cost per unit for each of the 2 products Compare the total coast per unit by product under the traditional and ABC methods. Explain whether the total cost per unit had been over/understated using the traditional method. Now assume the price of both products must be decreased by 10 percentage due to sudden news of a new of a new foreign competitor. Advise BB Company (including comment on target costing.)