Transom Corp. makes many products but is best known for its two styles of park benches: Classic and Modern. Trans its MOH allocation system to pool all MOH costs into two key departments: Assembly and Finishing. It based Assem machine hours, and Finishing MOH costs on DL hours. The company understood its costs, set selling prices to cover i carried on smoothly-until now. Transom's president received some phone calls from community members complain bench pricing and reporting that a non-community supplier is priced 25% lower than Transom's listed price. In an effort to better understand its costs, Transom's accountants gathered the following information for the two de, found more detailed information on key activities within its overhead costs. Department system Classic: Applied MOH/ unit - $472,00010,000 units - $47.20 Total product cost $80.00+$50.00+$47.20$177.20 Modern: Applied MOH/unit - $360,00012,000 units - $30.00 Total product cost $100.00+$50.00+$30.00$180.00 Activity-based system Classic: Applied MOH/unit - $317,00010,000 units - $31.70 Total product cost $80.00+$50.00+$31.70$161.70 Modern: Applied MOH/unit - $261,00012,000 units - $21.75 Total product cost $100.00+$50.00+$21.75$171.75 Gross margins for both products based on a selling price of $350 is as follows: (e) If Transom believes the ABC information to be accurate, should its president consider re-pricing the Classic and/or the Modern model? Explain