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This is all one question. Question 3: Manchester City is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds

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Question 3: Manchester City is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools: Strawberry Cheesecake; Annual production: 19,500 units Direct Materials per unit: $10 Direct Labor per unit: $2 Cost Pool Materials ordering Materials inspection Equipment Setup Cost $72,000 75,000 105,000 69,000 100,000 $421,000 Cost Driver Number of purchase order Number of receiving reports Number of setups Quality Control Other Total MOH Number of inspections Direct labor costs Annual activity information related to cost drivers: Strawberry Cheesecake 100 Cost Pool Materials ordering Materials inspection Equipment Setup Quality Control Other All Products 8000 orders 375 reports 3000 setups 3000 inspections 2 million direct labor 150 $39,000 Required: A. Calculate the overhead rate per unit of activity for each of the five cost pools B. Calculate the total overhead assigned to the production of the strawberry cheesecake. C. Calculate the overhead cost per unit for the strawberry cheesecake. D. Calculate the total unit cost for the strawberry cheesecake. E. Suppose that the Manchester City allocates overhead by a traditional cost method using direct labor dollars as the cost allocation base (cost driver) and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the strawberry cheesecake. Discuss the difference in cost allocations between the traditional costing method and activity-based costing approach

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