Longmire Company produces two products AZ and BZ. It applies manufacturing overhead on the basis of direct labour hours. Expected costs (material, labour, and overhead) and unit volumes are: AZ:2,500 units, $250 BZ: 4,000 units,$300 Longmire's overhead arises because of various activities, one of which is purchase-order processing. Budgeted cost for this activity is expected to be $75,075. The company believes that the number of purchase orders processed is a key cost driver and expects the following activity for its products: AZ:15 purchase orders;BZ:50 purchase orders. Longmire's selling prices are based heavily on cost. Activity-based costing (ABC) is said to result in improved costing accuracy when compared with traditional costing procedures. Briefly explain how this improved accuracy is attained (5 marks) Calculate the pool rate for purchase order processing (3 marks) Calculate the purchase-order processing cost to be charged to one unit of AZ (4 marks) Assume that Longmire switched to activity-based costing and calculated total unit production costs as follows:AZ: $290; BZ:$225. Which of the two products was over costed prior to the change to ABC? (3 marks) Which of the two products may be been less competitive in the marketplace prior to the change to ABC? Briefly explain