Among other things, the CFO wanted to compare the overhead estimates per product based on the
traditional costing and ABC methods. In addition, the CFO wanted to understand, computer or calculate
the following:
1. Using the traditional costing method, compute the overhead costs per product.
2. Using the traditional costing method, compute the total costs per product.
3. Under ABC:
a. Calculate the activity-based overhead rates per activity cost driver.
b. For each product, compute the overhead costs per activity cost driver.
c. Using the overhead costs from b., calculate the total costs per product.
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