The chief cost accountant determined that a single predetermined overhead rate was not

accurately allocating overhead to the company's diverse set of products and decided to

allocate overhead to Job$432$XE using Activity$-$Based Costing $($ABC$)$ instead. After collecting

the data, the company decided to use three different cost pools and would allocate costs

based on the following information:

a$)$ Calculate the activity rate for each cost pool.

b$)$ Calculate the amount of manufacturing overhead allocated $($applied$)$ to Job $432$XE

the job used $15$ direct labor hours, $5$ purchase orders, and $10$ tests were conducted.

c$)$ Calculate the product cost per unit for Job $432$ XE using activity$-$based costing $($ABC$).$

Were the unit product costs the same for the two methods?

What could happen if Michael's company continued allocating overhead to its products

using a single overhead rate?