Fantastique fashions Ltd has switched from a traditional product costing system to an activity based product costing system to assign manufacturing overhead costs to products. The table below show cost per unit for two products under the two costing systems:
Costing system _________________ Product A _____________ Product B
Traditional ................................. $36 ................................. $25
ABC ........................................ $30 ................................ $45
Required:
1. Describe the most likely features of products A and B by replacing the question marks (?) in the following table with 'Yes' or No.

2. Explain your answers to requirement 1.

Transcribed Image Text:

Product feature High-volume product line Low-volume product line Produced in small batches Produced in large batches Simple to produce Complex to produce Product A Product B