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In: AccountingYou are a manager at PopUp Company, who manufactures toasterovens. Your company produces two types...You are a manager at PopUp Company, who manufactures toasterovens. Your company produces two types of toaster ovens: basic anddeluxe. PopUp Company currently uses a traditionalunit-based costing system, however, you feel strongly the companyshould switch to an activity-based costing system. You believe thischange would provide you more accurate costing information, whichwould allow for better strategic decision making.Required:1.Compare the traditional and activity-based costmanagement systems. Give advantages and disadvantages of each anddiscuss how these concepts will relate to PopUpCompany.2.PopUp Company produces twotypes of toasters, basic and deluxe. For the current period, thecompany reports the following data:Basic ToasterDeluxe ToasterVolume20,000 units5,000 unitsMachine Hours1,0002,400Batches315125Engineering Modifications2050 Prime Costs$20,000$30,000Market Price$25 per unit$60 per unitAdditional InformationFollows CostsDriverEngineering Support$15,900ModificationsElectricity25,000Machine HoursSetup costs33,900Batches1) Compute the manufacturingcost per unit of each toaster using the current unit-basedapproach.Under this system costs areassigned to the toasters on the basis of machine hours.2) Compute the manufacturingcost per unit of each toaster using an activy-based costingapproach