Question 2 (25 marks) ABC Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Activity Cost Pools Activity 1 Activity 2 Activity 3 Direct Materials per unit Direct labour (@$3 per hour) per unit Estimated Expected Activity Overhead Cost Product A Product B Total $ 24,000 200 800 1,000 $ 36,900 750 2 900 $ 63,000 1,000 800 1.800 $10 $20 3 hour 4 hour Required: a) The overhead costs per unit of Product A and Product B under activity-based costing (round to 2 decimal places). (11 marks) b) The unit product costs of Product A and Product B (round to 2 decimal places) (5 marks) c) If a company changes from traditional costing system to an activity-based costing system, what kind of products in the company will change most of the manufacturing overhead per unit? Explain (less than 12 words). (3 marks) d) Why some firms prefer activity-based costing? Give three reasons with elaboration (less than 50 words) (6 marks)