I just need help with number 2(b,c) questions. which is:

b. Explain Activity Based Costing and describe three activities for ABC costing.

Include one advantage and one limitation in using ABC costing in comparison to Traditional Costing.

C. Explain and compare Unit Level Activities to Product Level Activities.

Provides two example for Unit Level Activities and two examples for Product Level Activities. thank you!

Ch17 Case Study Assignment - Part 3 Activity Based Costing versus Traditional Costing Problem. Currently Kingdom Industries is considering changing to an Activity Based Costing System due to increased sales, increased number of products, and a more complex manufacturing process with many activities. Kingdom Industries has the following overhead costs and cost drivers. Activity Cost Pools Cost Driver Estimated Overhead Cost Driver Activity Ordering and Receiving Orders $56,250 2,250 orders Machine Setup Setups $50,000 10,000 setups Machining Machine hours $600,000 50,000 MH Assembly Parts $450,000 600,000 parts Inspection Inspections $1,280,000 40,000 inspections Traditional Cost Pool Direct Labor Hours $2,436,250 1,000 DL Hours 1: Compute the total overhead costs assigned to Product C using activity based costing: Activity Cost Pool Product C Activity ABCI Overhead Rate (Please See Tip 1 below) 2 23 Total Product Overhead (Please See Tip 2 below) (axb) $6,250 $2,500 $72,000 $37,500 $160,000 $278.250 la) (b) Ordering and Receiving 250 Orders $25 Machine Setup 500 Setups $5 Machining 6,000 Machine hours $12 Assembly 50,000 Parts $0.75 Inspection 5,000 Inspections $32 Using ABC costing, Total Overhead Costs assigned to Product C 25 26 28 20 Tip 1: ABC Overhead Rate = Estimated Overhead / Cost Driver Activity A Tip 1: ABC Overhead Rate = Estimated Overhead / Cost Driver Activity Tip 2: Total Product Overhead = Product C activity x ABC Overhead Rate 2: Compute the total overhead costs assigned to Product C using traditional costing: Traditional Costing Product C Activity Traditional Overhead Rate Total Overhead Costs (Please See Tip 3 below) (Please See Tip 4 below) (a) (b) (axb) Traditional Cost Pool 150 DL Hours $2,436.25 S365.437.50 Tip 3: Traditional Overhead Rate = Estimated Overhead / Cost Driver Activity Tip 4: Total Product C Overhead Product Cactivity x Traditional Overhead Rate 3: Compute and compare ABC Overhead Costs to Traditional Overhead Costs for Product C: Current Traditional OH Proposed ABC OH Increase/ (Decrease) (a) (b) (ba) Product COH. Costs $365,438 $278,250 $87 188 2. Instructions for Posting (200 to 300 words - 60pts): a. Based on the results for Product B Overhead for Traditional Costing and the proposed ABC Costin 1-Would you recommend to change from Traditional Costing to ABC Costing for computing overt 2.Provide three reasons (explain advantages or disadvantages) for your decision. b. Explain Activity Based Costing and describe three activities for ABC costing. Include one advantage and one limitation in using ABC Costing in comparison to Traditional Cos c. Explain and compare Unit Level Activities to Product Level Activities. Provide two examples for Unit Level Activities and two examples for Product Level Activities. * Upload and attach your completed excel file to your posting