LMN Tech manufactures two products: Product X and Product Y. The following information is available:

• Product X: Total costs $200,000, Total units of activity 5,000
• Product Y: Total costs $300,000, Total units of activity 8,000

Requirements:

1. Calculate the cost per unit of activity for Product X and Product Y using activity-based costing.
2. Determine the cost allocation rate for overhead based on activity-based costing.
3. Discuss how activity-based costing improves cost accuracy for LMN Tech.
4. Analyze the profitability of each product using activity-based costing data.
5. Evaluate LMN Tech's pricing strategy based on activity-based costing insights.