Cabanos Company manufactures two products, Product C and Product D. The company estimated it would incur $160,790 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Product C Product D Estimated volume 3,400 units 4,800 units Direct labor-hours per unit. 1.40 hour 1.90 hours Direct materials cost per unit $7.40 $12.70 Direct labor cost per unit..... $14.00 $19.00 Required: a. Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Activity Cost Pool Machine setups...... Purchase orders... General factory Estimated Overhead Costs $ 12,190 79,200 69,400 $160,790 Expected Activity Product C Product D 80 150 730 920 4,760 9,120 Total 230 1,650 13,880 Determine the unit product cost of each product for the current period using the activity-based costing approach. c. Explain why product costs for Product C and D are different between current method and ABC method