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Please provide the answer to this question part b states that; b) Is ABC costing appropriate for this company? explain? AB Company produces 2 products.

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Please provide the answer to this question

part b states that;

b) Is ABC costing appropriate for this company? explain?

AB Company produces 2 products. It is currently using a plant wide rate allocation system for overhead that allocates the same amount of overhead to each unit of product. Under this system overhead allocated to each product is $12.55 per unit. To improve product cost accuracy, management of AB Company decided to investigate the use of activity-based-costing. After further analysis, the company determined that manufacturing averhead costs can be attributed to three major activities. These activities and the amount of Required: (Show and label all your work. Round final unit cost to 2 decimal places.) a) Using the data above and an activity-based costing approach, determine the unit manufacturing overhead costs for each product for the current year. (7 marks)

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