its a mgmt accounting hw

Currently Jackson prices its products at 120% of total manufacturing cost .It has noticed that a competitor is producing MARTHA and has been pricing its products at $230 each and that sales of MARTHA have been declining over the last year.Because of this the accountant at Jackson has suggested that Activity Based costing should be considered .He suggested the following details Activity Cost Pool Cost driver Budgeted level Machine related costs Machine hours 9000 hours Setup and inspection Number of production runs 40 runs Engineering Engineering change orders 100 change orders Plant related costs Square footage of space 1,920 sq ft. You have gathered some further information about the two products : Each FRED requires 4 machine hours, whereas each MARTHA requires 1 machine hour The FRED is manufactured in production runs of 50 units each .Each MARTHA is manufactured in 250 unit batch Three quarter of the engineering activity ,in terms of change orders ,is related to FREDs The plant has 1,920 square feet of space, 80 per cent of which is used in the production of FREDs Required: (a) Calculate the cost per unit for FREDs and MARTHAs using the conventional approach when calculating overhead (b) Calculate the cost per activity for each activity cost pool (c) Calculate the product cost per unit for FREDs and MARTHAs using Activity Based Costing. (d) Using the same pricing approach as above(120% of total manufacturing cost) calculate the price that would be charged for FREDs and MARTHAs using Activity Based costing. (e ) Based on your calculations using Activity Based costing explain how the conventional volume based approach to allocating overhead has lead to mispricing the products. (f) What are the benefits that would come from introducing Activity Based costing(ABC)? (g) Are there any disadvantages from using ABC ?