Any help would be appreciated. Bata Ltd manufactures two different models of its famous video game console: the sBox and xSquare models. Thecompany has been producing the sBox model for 10 years; whereas the xSquare model was introduced this year toappeal to a wider variety of consumers and capture a larger segment of the video game market. Once the xSquareproduct line was introduced, profits declined rapidly. Management has become concerned about the accuracy oftheir costing system as sales of the xSquare system have been increasing rapidly since being released.Bata Ltd currently allocates manufacturing overhead using direct labor hours as the cost driver. The company hasestimated it will incur $1,900,000 in manufacturing overhead costs and produce 50,000 units of the sBox model and7,000 units of the xSquare model. The following information pertains to the production of the sBox and xSquaremodels: sBoxxSquareDirect Labour Hours per unit1.52.5Direct materials per unitDirect Labour per unit$25$39$115$50$68$215Selling PriceRequiredA) Calculate the cost to produce one unit of the sBox and xSquare models using the current method of allocating manufacturing overhead (traditional costing).B) The company has decided it wants to switch to Activity-Based Costing, and has identified the following fouractivities relevant to producing both the sBox and xSquare lines. The relevant amounts for 2022 are:Total units ofActivityShippingCost DriverCostdriversBoxxSquareNumber of shipments300,000800375425Quality ControlMachine SetupsNumber of inspectionsNumber of setups2$400,0002,2009001,300650,000340,000195,000145,0002$$Machine MaintenanceMachine hours550,000480,000340,000140,0001,900,000Using the activity based costing data above, compute the total cost to manufacture one unit of each modelC) Briefly explain the difference between how overhead is treated between ABC and traditional costing, and this difference's overall impact on costing the xSquare model?

Under Traditional costing, predetermined overhead rate will be computed and on that basis…

Bata Ltd manufactures two different models of its famous video game console: the sBox and xSquare models. The company has been producing the sBox model for 10 years; whereas the xSquare model was introduced this year to appeal to a wider variety of consumers and capture a larger segment of the video game market. Once the xSquare product line was introduced, profits declined rapidly. Management has become concerned about the accuracy of their costing system as sales of the xSquare system have been increasing rapidly since being released. Bata Ltd currently allocates manufacturing overhead using direct labor hours as the cost driver. The company has estimated it will incur $1,900,000 in manufacturing overhead costs and produce 50,000 units of the sBox model and 7,000 units of the xSquare model. The following information pertains to the production of the sBox and xSquare models: