overhead costs are assigned to the products on the basis of direct labour$-$hours.

labour for the two products follow:

Management estimates that the company will incur $$600,000$ in overhead costs during the current year and that $10,000$ indoor banners and $2,000$ outdoor banners will be produced and sold.

Required:

product cost of each product.

calculate the predetermined overhead rate for each activity cost pool identified below:

Using the predetermined manufacturing overhead rates that you computed in $(2)$ above, do the following:

a$.$ Determine the total amount of manufacturing overhead cost that would be applied to each product using the ABC system. After you have computed these totals, determine the amount of overhead cost per unit of

cach product.

b$.$ Compute the unit product cost of each product

thinks they are? Explain.