Question One : Suppose that ABC Corporation currently uses traditional costing for making business decisions. However, the company has decided to move to activity-based costing for production related to products C1 and C2. As one of the company's accountants, you have been asked to compare between the two costing methods for the next company board meeting. Your supervisor has given you the following data: Total Indirect Costs for the Period: Assembly $300,000 Welding $200,000 Inspection $100,000 Product C1 Product C2 Direct Costs (Materials, Labor) $130,000 $120,000 Machine Hours (Assembly) 500 1,500 Number of Units Produced (Welding) 6,000 4,000 Testing Hours (Inspection) 6,000 8,000 Required: a) What is the total manufacturing overhead cost per unit using traditional costing for C1? Use machine hours as the cost-allocation base. b) What is the total manufacturing costs per unit using traditional costing for C2? Use direct costs as the cost- allocation base. c) What is the total manufacturing costs using activity-based costing for C1? d) Classify the following costs according to their cost behavior and their traceability to the cost object: - Sales' persons' commissions - Plant Depreciation - Freight Out - Property Taxes - Heat and Air conditioning for the shop - Printing Ink for Printers in a Manufacturing Company