HOW TO SOLVE THIS QUESTION

T. Rem Company has two major products in its business line. Product 1 and Product 2. The company has a traditional costing system in which overhead is applied based on direct labour hours. Data regarding the two products is as follows: Product 1 Product 2 Direct Material per unit $1 $5.5 Direct Labour per unit $24 $19 Direct labour hours per unit 0.2 DLHs 0.1 DLHs Annual Output 10,000 30,000 The company estimates overhead to be $400,000 and direct labour hours to be 18,000 for the upcoming year. Required a. Calculate the unit cost for each product {1 and 2) under traditional costing system b. The company is considering changing from traditional costing system to ABC system. The following activity cost pools