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Q2 Cabalo Company manufactures two products, Product Cand Product D. The company estimated it would incur $130,890 in manufacturing overhead costs during the current period. Overhead currently is assigned to the products on the basis of direct labor hours. Data concerning the current period's operations appear below: Product C Product D Estimated volume 450 units 1,300 units Direct labor hours per unit 0.80 hour 1.40 hours Direct material cost per unit $11.70 $15.70 Direct labor cost per unit S12.20 $17.20 Management is considering using activity-based costing to apply manufacturing overhead cost to products for external financial reports. The activity-based costing system would have the following three activity cost pools: Estimated Activity Cost Pool Activity Measure Overhead Cost Machine setups Number of setups S 15,570 Purchase Orders Number of purchase orders 93,520 General Factory Direct labor hours 28,800 Activity Measure Product C Product D Number of setups 130 150 Number of purchase orders 710 1,370 Number of direct labor hours 260 1.540 Required: 1. Compute the predetermined overhead rate under the current method and determine the unit product cost of each product 2. Determine the activity rate (1.c. predetermined overhead rate) for each cost pool 3. Compute the total amount of manufacturing overhead cost that would be applied to each product using the activity-based costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each product. 4. Compute the unit product cost of each product. 5. Compute the overhead applied to work-in-process using both traditional costing and ABC for a job with the following actual activity: Activity Measure Job Number of setups 15 Number of purchase orders 50 Number of direct labor hours 55