Limerick Box Company (LBC) manufactures two products, corrugated plastic boxes and corrugated cardboard boxes. LBC has traditionally allocated overhead based on the number of boxes made. Due to deterioriating cardboard box sales, the company is considering using activity based costing to compute unit product costs. The company expects to produce and sell 16,000 plastic boxes and 30,000 cardboard boxes during the upcoming year. Estimated data related to the company's three activity cost pools are given below for the upcoming year: Estimated Expected Activity Activity Cost Pool Overhead Costs Plastic Box Orders Cardboard Box Orders Total Activity Machine setups $21,357 130 90 220 # of setups Purchasing $85,426 650 1,110 1,760 # of purchase orders General Factory $42,713 1,280 1,200 2,480 square footage Total $149,496 NOTE: If the data above is blank it means you haven't entered your student number on the Cover tab. Required: Please answer the following 2 questions using the data above. I have left space after each question for your to do your work. If you need more space you can insert rows. Please do not use column A as I would like to use it to record my marking. 1 Using the activity based costing approach, determine the estimated overhead cost per unit for each product. Show your work to get full marks. (7 marks) 2 If LBC continued to use the traditional method of allocating overhead then what would the estimated cost per unit for each product be? Based on the comparison of overhead allocated per box under the traditional method vs under the ABC method, why do you think cardboard sales have been deteriorating? (3 marks)