manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $816,000 assigned to Product H and $816,000 assigned to Product L. If this suggestion is followed, how much overhead cost per unit would be assigned to each product? 3. Explain the impact on unit product costs of the switch in costing systems. EXERCISE 4-5 Assigning Overhead to Products in ABC LO4-2, LO4-3 Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Measure Expected Overhead Cost Expected Activity Activity Cost Pool 26,000 DLHs Direct labor-hours Number of orders $156,000 $11,000 220 orders 100 part types Parts management Number of part types $80,00 $90,000 $180,000 2,000 boards 20,000 MHs ng. . Number of boards General factory . . Machine-hours Required 1. 2. The expected activity for the year was distributed among the company's four products as follows: Compute the activity rate for each of the activity cost pools