NO.2 Gothic Furniture Corporation has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected activity drivers for 2019 are as follows: Activity center Utilities Costs $300,000 Scheduling and setup 273,000 Material handling 640,000 Other indirect labor cost 157,000 Activity drivers machine hours setups pounds of material direct labor hours The company's products and other operating statistics follow: Direct costs Machine hours Number of setups Pounds of material Number of units produced Direct labor hours PRODUCTS B 80,000 P 80,000 90,000 30,000 10,000 20,000 130 380 270 500,000 300,000 800,000 40,000 20,000 60,000 32,000 18,000 50,000 1) Before it installed an ABC system, the company used a conventional costing system and allocated factory overhead to products using direct labor hours. The firm operates in a competitive market and product prices were set at a cost plus a 20 percent markup. a. Calculate unit costs based on conventional costing. b. Determine selling prices based on unit cost for conventional costing. c. Calculate the unit cost using the appropriate cost drivers for each of the products. d. Determine selling prices based on unit cost for activity-based costing. 2) Reconcile the two costing systems, for each product. (use columns for total and per-unit costs) 3) What percentage of Gothic Furniture Corporation's overhead is treated differently by the two costing systems? 4) Determine the percentage change in the selling price of each product as a result of the change in the system.