QUESTION 4 (12 marks) The Deutschland uses activity-based costing. The controller identified two activities and their budgeted costs: Setting up equipment $108,000 Other overhead $360,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Deutschland produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units Produces 2,000 10,000 Setup Hours 1,600 400 Oven Hours 400 2,000 Required: a. Calculate the activity rate for (1) setting up equipment and (2) other overhead. (2 marks) b. How much total overhead is assigned to Fudge using ABC? (2 marks) c. What is the unit overhead assigned to Fudge using ABC? (2 marks) d. Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. (2 marks) e. How much total overhead is assigned to Fudge using the plantwide overhead rate? (2 marks) f. Based on your calculations above, briefly explain the differences between ABC and traditional product cost for Fudge? (2 marks)