Katherine Corporation has three products: Small, Medium and Large. It uses Activity Based Costing and has prepared the analysis below that

shows budgeted cost and activity for each of its three activity cost pools $($maintenance$,$ storage and employee safety$).$ Using the analysis below,

you are to do the following:

A$.$ Compute the approximate overhead cost to be expected for each of the three products under ABC.

B$.$ Calculate the cost per unit for just the Large Product assuming that $50,000$ units are expected to be produced. Assume that direct materials

will cost $$5\mathrm{.}00$ and direct labor will cost $$3\mathrm{.}50$ per unit.

A$.$ ABC Method