Question #4 (10 marks) Cabanos Company manufactures two products, Product C and Product D. The company estimated it would incur $160,790 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labour hours. Data conceming the current period's operations appear below: Estimated Volume Direct Labour Hours: per Unit Direct Materials Cost per Unit Direct Labour Cost Unit per Required: Product C 3.400 units Product D 4,800 units 1.40 hour 1.90 hours $7.40 $14.00 $12.70 $19.00 a) Compute the predetermined overhead rate under the current method, and determine the manufacturing overhead cost per unit for each product. (4 marks) b) The company is considering using an activity-based costing system to compute unit product costs for each product for internal financial reports instead of its traditional system based on direct labour hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are below. Compute the unit product costs: (6 marks) Estimated Activity Cost Pool Overhead Expected Activity Costs Product C Product D Total Machine setups $12,190 80 150 -230 Purchase orders 79,200 730 920 1,650 General factory 69,400 4,760 9,120 13,880 Total $160,790