At a recent staff meeting, Daniel Hamburg - the production manager - raised concerns that John Healy - the newly recruited management accountant - is not considering all manufacturing costs while calculating product costs under the activity-based costing system. While John was attempting to address Daniel's concern during the meeting, Tang Chu - the CEO - stopped him as the meeting had to finish soon.

However, Tang told John to write a report addressing Daniel's concern, which needs to be submitted before the next meeting. Imagine yourself as John and prepare the report.