KryptonInc.manufacturestwoproducts,VintexandBromal.The company estimated itwouldincur$160,690 inmanufacturing overheadcostsduring thecurrentperiod. Overheadcurrentlyisappliedtotheproductson thebasisof directlabour hours.Dataconcerningthecurrentperiod'soperations appearbelow:

	Vintex	Bromal
Estimated Volume	4,700 units	3,300 units
Direct labour hours per unit	2.1 hours	1.6 hours
Direct labour cost per unit	$33.60	$25.60
Direct material cost per unit	$4.80	$12.70

Thecompanyisconsideringusingan activity-basedcostingsystemtocompute unit product costsinsteadof itstraditionalsingleplant-widesystembased on directlabour hours.Theactivity-based costingsystemwould usethreeactivitycost poolsanddrivers:

Activitycostpool Driver

Materialacquisitioncosts Purchase ordersMachinecosts Machinesetups

Generalfactorycosts Direct labourhours

Data relating to these activities for the current period are given below:

Activity cost pool	Estimated overhead costs	Expected driver activitylevels Vintex Bromal Total
Material acquisition costs	$78,800	920	730	1650
Machine costs	$12,490	150	80	230
General factory costs Required:	$69,400	9,870	5,280	15,150

1. Computethepredetermined overheadrateunderthesingleplant-wide method,anddeterminetheunitproductcost of each productforthe currentyear.

1. Determine theunitproductcost of each productforthe currentperiodusing theactivity-based costingapproach.

1. Whichmethodwillprobablyprovidea betterrepresentationof unitcost?Explainbriefly.