Question 2 The company manufactures two products, S and H, and given the following: 1- Product H requires 2 hours of direct labor time per unit and product S requires 1 hour 2- The overhead cost is applied on the basis of direct labor hours, and estimated overhead 205,000 3- Units produced to product S ,5,000 units and to product H, 20,000 units 4- The unit cost : Page 1 of 4 S H Direct materials $5 $ 12 Direct labor $ 4 $ 10 Required 1- Compute the predetermined overhead rate under the traditional method (10 marks) 2- If the company will be use A.B.C, and given the activity cost pools (15 marks) Activity cost pool Total cost Products Product, H Machine setups $ 200,000 600 1,400 Purchase orders issued 40,000 400 600 Machine - hours 100,000 7,000 3,000 Maintenance -request 150,000 12,000 3,000 Using the above data to compute the unit cost for each product