Suppose that: 
If no other information is available, what will your guess about the spot rate in one year be?
Definitions:
Traditional Costing
A costing method used for expense allocation in which the cost of products is based on the amount of manufacturing-related resources they consume, without differentiating between fixed and variable costs.
Activity-Based Costing
A costing method that identifies the activities in an organization and assigns the cost of each activity according to the actual consumption by each.
Manufacturing Overhead
includes all manufacturing costs that are not directly related to the production of goods, such as factory rent, utilities, and maintenance expenses.
Unit Product Cost
The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs related to production.
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