answer all please

The next three questions are based on the following: A company is considering switching to an activity-based costing (ABC) system. The company produces and sells two products B and Pro. The production of the Pro products requires more expensive materials and more experienced workers. The company consist two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activit only). The company's traditional costing system computes unit product costs as dictated by GAAP: direct labor cost (DLC) is used the allocation base for manufacturing overhead cost (the overhead rate is rounded to the nearest cent). The ABC system will include in unit cos all costs easily associated with unis. In addition, in the ABC system, there are four majior indirect activitis Machine Setup Special Processing, Factory Supervision, and Customer Relations In the ABC system, Customer Relations costs will be associated with customers; the rest of the costs will be associated with units of the two products. 9% of Customer Relations cost Customer Relations cost is incurred in the Marketing Department. relates to manufacturing and is incurred in the Production Department, the rest of the The prices, direct material cost (DM), shipping cost and DI.Hs below are given for one unit of the product Hourly Shipping Product Basic Pro DLHs Units Wage-DL Cost $44 S150 $250 $10 S15 S1 54 4000 The company collected the data for ABC as follows: Activity measures used Activity Measure Machine hours DLC .# of customers OH BasicPr Activity Cost Pool S 360,000 S 135,000 s 225.000 $ 200.000 of setups Machine Sctup Special Processing Factory Supervision Customer Relations (on 5 customers) 8,000 12,000 4 What is the difference between the Pro product's unit costs computed by the traditional and ABC systems? A. Under the traditional costing system, the unit cost of the Pro product is lower by B. Under the traditional costing system, the unit cost of the Pro product is higher C. Under the traditional costing system, the unit c D. Under the traditional costing system, the unit cost of the Pro product is hieer E None of the ahove s 6.25 per unit S 625 per unit s 2.25 per unit. S 225 per unit cost of the Pro product is lower by The next three questions are based on the following: A company is considering switching to an activity-based costing (ABC) system. The company produces and sells two products B and Pro. The production of the Pro products requires more expensive materials and more experienced workers. The company consist two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activit only). The company's traditional costing system computes unit product costs as dictated by GAAP: direct labor cost (DLC) is used the allocation base for manufacturing overhead cost (the overhead rate is rounded to the nearest cent). The ABC system will include in unit cos all costs easily associated with unis. In addition, in the ABC system, there are four majior indirect activitis Machine Setup Special Processing, Factory Supervision, and Customer Relations In the ABC system, Customer Relations costs will be associated with customers; the rest of the costs will be associated with units of the two products. 9% of Customer Relations cost Customer Relations cost is incurred in the Marketing Department. relates to manufacturing and is incurred in the Production Department, the rest of the The prices, direct material cost (DM), shipping cost and DI.Hs below are given for one unit of the product Hourly Shipping Product Basic Pro DLHs Units Wage-DL Cost $44 S150 $250 $10 S15 S1 54 4000 The company collected the data for ABC as follows: Activity measures used Activity Measure Machine hours DLC .# of customers OH BasicPr Activity Cost Pool S 360,000 S 135,000 s 225.000 $ 200.000 of setups Machine Sctup Special Processing Factory Supervision Customer Relations (on 5 customers) 8,000 12,000 4 What is the difference between the Pro product's unit costs computed by the traditional and ABC systems? A. Under the traditional costing system, the unit cost of the Pro product is lower by B. Under the traditional costing system, the unit cost of the Pro product is higher C. Under the traditional costing system, the unit c D. Under the traditional costing system, the unit cost of the Pro product is hieer E None of the ahove s 6.25 per unit S 625 per unit s 2.25 per unit. S 225 per unit cost of the Pro product is lower by