The Orange Phone Company manufactures three types of cellular phones, the Tangerine, the Vermillion and the Flame. Company management estimates that they will incur a total of $365,990 in manufacturing overhead costs this scal year. Today, they apply overhead to products on the basis of direct labour hours. Production data for the Tangerine, Vermillion and Flame models follow: Tangerine Vermillion Flame Expected production volumes 5,200: units 7,X)O( units 10,)(XX units Direct labour hours per unit 1.75 hours 2.40 hours 2.65 hours Direct materials cost per unit $ 8.67 $ 13.89 $ 16.27 Direct labour cost per unit $ 16.75 $ 19.50 $ 28.00 REQUIRED: a. Using the current costing method, calculate the predetermined overhead rate and the unit product cost for each model. (10 marks) b. The Orange Phone Company is considering implementing an activity-based costing system to calculate unit product costs rather than its current costing system based on direct labour hours. The activity-based costing system is based on the following four activity cost pools. Data for the current period's activities are provided below: Estimated Expected Activity Activity Cost Pools Cost Driver Overhead Costs Tangerine Vermillion Flame Total Plastic Moulding Labour Hours $ 103,700 900 1,020 1,560 3,480 Phone Assembly Number of Phones 85,120 530 670 1,200 2,400 Product Packaging Number of Boxes 94,790 470 595 685 1,750 Order Fulfillment Order Volume 82,380 1,240 1,365 1,740 4,345 LA 365,990 Determine the unit product cost of each product for the current period using the activity-based costing approach. (28 marks)