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Exhibit II - Activity Based Costing Information The following is an excerpt of an e-mail from the CHF Vancouver Plant Manager: "I have suspected for a long time that our current method of costing is inaccurate. Please review the following information about two of our products: breaded cod, and breaded haddock, and answer my questions." The following are activities, related costs, and cost allocation bases: The haddock line had a total weight of 25,200 kilograms, used 3,785 machine hours, and required 3,100 labour hours. The cod line had a total weight of 18,000 kilograms, used 6,125 machine hours, and required 1,700 labour hours. CHF produced 7,800 cases of haddock, and 7,100 cases of cod. "My questions are as follows: 1. What would be the cost allocation rate for each activity? 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit (case) of haddock and the cod. 3. Originally we had used a single-allocated-based cost system to allocate indirect costs to haddock and cod at a rate of $312 per machine hour. Calculate the total indirect costs allocated to the haddock and to the cod under the original system, and calculate the cost per case under the original system for both haddock and cod. 4. Compare the activity based costs per case to the costs from our original system. How much have unit costs changed?" 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit (case) of haddock and the cod