Question3 Carolina Industries 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 concerning the current period's operations appear below: Product C 3,400 units 1.40 hour $7.40 $14.00 Product D 4.800 units 1.90 hours $12.70 $19.00 Estimated Volume Direct Labour Hours per Unit Direct Materials Cost per Unit Direct Labour Cost per Unit Required: a) Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. b) The company is considering using an activity-based costing system to compute unit product costs for external 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 given below: Activity Cost Pool Estimated Overhead Costs Expected Activity Product C Product D Total Machine setups $12,190 Purchase orders79,200 69,400 $160,790 230 9201,650 4,760 9,12013,880 80 730 150 General factory Total Determine the overhead rates for each activity centr and the unit product cost of each product for the current period using the activity-based costing approach