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 Daniels concern during the meeting, Tang Chu the CEO stopped him as the meeting had to finish soon. However, Tang told John to prepare a report addressing Daniels concern, which needs to be submitted before the next meeting. Imagine yourself as John and prepare the report.