Activity Based Costing Problem Zannon Corporation manufactures a Blu-ray Player available in two models: the 2100, and the 2200 Despite the growing popularity of the 2200 model, company profits have been declining steadily, and management is beginning to think there might be a problem with their costing system. Material and labour costs per unit are presented in the chart below: 2200 Direct Materials The company's estimated total overhead is $600,000 for the coming period. It applies manufacturing overhead on the basis of direct labour hours. The 2200 is the more complex product, requiring 4 hours of direct labour to manufacture, while the 2100 is less complex requiring only 3 hours of direct labour. 30,000 units of 2100 and 15,000 units of 2200 will be produced and sold. Management is considering a shift to activity-based costing. The following information is available relating to the company's activity pools: Estimated Overhead pected Activity Activity Cost Pool and Activity Measure Cost Product Testlne (Number of tests runi 90. 000 500 Required: #1 Assume that the company continues to use direct labour hours as a basis for applying overhead costs. a.) Compute the predetermined overhead rate. 1).] Compute the unit product cost. #2 Assume that the company shifts to activity-based costing. a.) Compute the activity rate for each of the activity cost pools and determine the amount of overhead cost that would be applied to each model using activity based costing. b.) Compute the unit product cost of each model. #3 a.) Under traditional costing, is the model 2100 overcosted or undercosted? By how much? 1).) Under traditional costing, is the model 2200 overcosted or undercosted? By how much