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Question 13 Mack) Krypton Inc. manufactures two products Vintex and Bromal. The company estimated it would incur $160,690 in manufacturing overhead costs during the current period Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below: Estimated Volume Direct labour hours per unit Direct labour cost per unit Direct material cost per unit Vintex 4,700 units 2.1 hours $33.60 $4.80 Bromal 3,300 units 1.6 hours $25.60 $12.70 The company is considering using an activity-based costing system to compute unit product costs instead of its traditional sangle plant-wide system based on direct labour hours. The activity. based costing system would use three activity cost pools and drivers: Activity cost pool Material acquisition costs Machine costs General factory costs Driver Purchase orders Machine setups Dirvet labour hours Data relating to these activities for the current penod are given below: Estimated Activity cost pool overhead costs Material acquisition costs $78.800 Machine costs $12.490 General factory costs S69.100 Expected driver activity levels Vinter Bromal Total 920 730 1650 ISO 80 130 9.870 3.280 13. ISO Required: a) Compute the predetermined overhead raite under the single plant-wide method, and determine the unit product cost of each product for the current year. b) Determine the unit product cost of each product for the current prud using the activity based cost approach . Which method will probably provide a better representation of untos Explan belly

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