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Chapter 4: Cost Management Systems and ActivityBased Costing Power Co. produces three products, Alpha, Beta and Gama, all used the same material. The company now is using traditional absorption costing system to allocate overheads to its products. The company is now considering an activity-based costing system in the hope that will improve profitability. Information for the three products for the last year is as follows: The price for raw materials remained unchanged throughout the year at $1.20 per kg, the labor cost for the whole workforce was $1.4 per hour. The annual overhead costs were as follows: Required: 1- Calculate the full cost per unit for the three products under the traditional absorption costing, using direct labor hours as the basis for apportionment. I. 2- Calculate the full cost per unit for the three products using the activity- based costing. 3. Using your calculation from requirement (a) and (b) compare and explain how ABC system help the company improve the profitability of each product Power Co. produces three products, Alpha, Beta and Gama, all used the same material. The company now is using traditional absorption costing system to allocate overheads to its products. The company is now considering an activity-based costing system in the hope that will improve profitability. Information for the three products for the last year is as follows: The price for raw materials remained unchanged throughout the year at $1.20 per kg, the labor cost for the whole workforce was $1.4 per hour. The annual overhead costs were as follows: Required: 1- Calculate the full cost per unit for the three products under the traditional absorption costing, using direct labor hours as the basis for apportionment. 2- Calculate the full cost per unit for the three products using the activity- based costing. :- 3- Using your calculation from requirement (a) and (b) compare and explain how ABC system help the company improve the profitability of each product Chapter 4: Cost Management Systems and ActivityBased Costing Power Co. produces three products, Alpha, Beta and Gama, all used the same material. The company now is using traditional absorption costing system to allocate overheads to its products. The company is now considering an activity-based costing system in the hope that will improve profitability. Information for the three products for the last year is as follows: The price for raw materials remained unchanged throughout the year at $1.20 per kg, the labor cost for the whole workforce was $1.4 per hour. The annual overhead costs were as follows: Required: 1- Calculate the full cost per unit for the three products under the traditional absorption costing, using direct labor hours as the basis for apportionment. I. 2- Calculate the full cost per unit for the three products using the activity- based costing. 3. Using your calculation from requirement (a) and (b) compare and explain how ABC system help the company improve the profitability of each product Power Co. produces three products, Alpha, Beta and Gama, all used the same material. The company now is using traditional absorption costing system to allocate overheads to its products. The company is now considering an activity-based costing system in the hope that will improve profitability. Information for the three products for the last year is as follows: The price for raw materials remained unchanged throughout the year at $1.20 per kg, the labor cost for the whole workforce was $1.4 per hour. The annual overhead costs were as follows: Required: 1- Calculate the full cost per unit for the three products under the traditional absorption costing, using direct labor hours as the basis for apportionment. 2- Calculate the full cost per unit for the three products using the activity- based costing. :- 3- Using your calculation from requirement (a) and (b) compare and explain how ABC system help the company improve the profitability of each product