$1.$ Calculate product costs using the Traditional Costing method:

o Use the overhead absorption rate $($$$28\mathrm{.}3$ per direct labor hour$)$ and the data on direct labor hours, material costs, and direct labor costs to calculate the full cost of each product $($A$,$ B$,$ C$).$

o Compare the cost to the selling price to determine the profit or loss for each product using this method.

$2.$ Calculate product costs using the Activity$-$Based Costing $($ABC$)$ method:

o Calculate the absorption rate per driver for each activity $($setup$,$ running, procurement, delivery$).$

o Use the activity$-$based data to allocate overhead costs for each product.

o Calculate the full cost of each product $($A$,$ B$,$ C$)$ based on the ABC method.

o Compare the cost to the selling price to determine the profit or loss for each product using this method.

$3.$ Compare the results from Traditional Costing and ABC:

o Analyze the cost and profitability differences for each product between the two methods.

o Discuss the reasons why the results might differ between the two costing approaches.

$4.$ Discussion and Recommendations:

o Based on your analysis, discuss which product is the most profitable and which product needs improvement.

o Provide recommendations for the bakery to improve profitability, including potential process optimizations, cost reductions, or pricing strategy adjustments for each customer segment $($low$-$income, medium$-$income, high$-$income$).$