Paris Fashions Ltd has switched om a traditional product costing system to an activity-based product costing system to assign manufacturing overhead costs to products. The table below shows the cost per unit of two products from its winter range under the two costing systems:

Costlng system Sweater Overcoat

Traditional $39 $28

ABC $33 $50

Q:

1.Describe the most likely features of Paris Fashions' sweater and overcoat products by replacing the question marks in the following table withes' or 'No'.

Product feature Sweater Overcoat

High-volume product Line ? ?

Low-volume product line ? ?

Produced in small batches ? ?

Produced in large batches ? ?

Simple to produce ? ?

Complex to produce ? ?

2.Explain your answers to requirement 1.