Highlands Industries has the following budget information available for February:

Required

a. Use activity based costing to prepare a manufacturing cost budget for February. Clearly distinguish between unit, batch, and facility-level costs.
bh. The operating managers at Highland Industries are concerned that the budgeting process is too timeconsuming and diverts attention from their current day-to-day responsibilities. Discuss the reasons that Highland should continue budgeting.

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Units manufactured Factory administration Assembly.... Direct materials Inspection.... Manufacturing overhead Product development. Setup cost 30,000 $65,000 1/2 hour per unit x $12 2 pounds per unit x $4 $250 per batch of 1,000 units $5 per unit $20,000 $15 per batch of 1,000 units