Tebo Enterprises manufactures two products, Banjos and Guitars. The company estimated it would incur $127.950 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below: Banjos Guitars Estimated unit production 380 units 1,000 units Direct labor hours per unit 0.70 hour 1.20 hours Overhead rate per direct labor hour $87.28 $87.28 Direct material cost per unit $10.50 $15.70 Direct labor cost per unit $11.10 $18.20 a. Determine the unit production cost of each product for the current year (Round overhead rate to two decimal places). b. The company is considering using an activity-based costing system to compute unit product costs for internal reports instead of its traditional system based on direct labor hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Estimated Expected Activity Activity Cost Pool Overhead Costs Banjos Guitars Machine setups $10,350 100 130 Purchase orders 83,200 1,270 Quality inspections 34.400 280 1,440 $127,950 Compute the overhead rates for each activity cost pool. 810 c Compute the overhead cost charged to each product using activity-based costing. d. Calculate the total unit cost for one Banjo and one Guitar. e. When a company switches from traditional costing to activity based costing what is the likely effect on unit cost of low-volume products and why? f. What is the effect on the overall net income when a company switches to activity based costing