$0.25 Dreamin of Summer Co. makes all things beachchairs, umbrellas, towels, coolers, toys, etc. With the next summer season approaching they are evaluating the two beach toy packages that they currently sell the Basic and the Deluxe Alltoys are made using plastic molding machines - resins are heated and injected into the molds for each toy, then allowed to cool, Dreatin of Summer uses an activity based costing system since they believe this more refined system helps them to understand their costs better See below for relevant problem data for the activity-based costing system Some relevant information for the past year (unit means one bag of toys) Basic Deluxe Number of units sold 350.000 300,000 Sales price per unit $7.00 $13.00 Direct materials per unit $1.00 Direct labor dollars per unit $0.50 $3.00 In addition, Dreamin of Summer decides to break total Indirect costs into the following cost pools, with corresponding cost-allocation bases: Basic Deluxe Molding machine operations $1.200.000 7 Molding machine hours per unit $100.000 Ordering costs 250 750 Total number of orders for each product (not per unit for each product in total >$200,000 3 Shipping Costs Pounds per unit 5950.000 Other Administrative Costs Increase with direct labor dollars Total $2.450.000 Under the ABC system, the total amount of shipping costs allocated to the Basic product are $56,000 $350.000 $107.692 $50,000