2. Carismo Lightning Products manufactures and sells two led bulb models: an economy model and a dimmable one. Setup costs for these products are driven by the number of setups. Allocation base for the equipment and maintenance costs is machine-hours, and square footage of production space allocated within the plant is the allocation base for lease rent. The following is the budgeted information for Carismo: Budgeted Costs and Activities for the Year Ended December 31, 2017 Direct materials-Economy Led Bulbs $ 170,000 Direct materialsDimmable Led Bulbs 320,000 Direct manufacturing labor- Economy Led Bulbs 120,000 Direct manufacturing labor- Dimmable Led Bulbs 100,000 Setup 150,000 Equipment and maintenance costs 110,000 Lease rent 240,000 Total $1,166,700 Other budget information follows: Number of products Machine-hours Number of setups Square footage of production space used Economy Bulbs 50,000 12,000 450 3,000 Advanced Bulbs 80,000 10,000 300 9,000 i. Calculate the budgeted cost per unit of cost driver for each indirect cost pool. (10 points) Setup Activity Costs Total Allocation Base (# of setups) Allocation Rate Repair & Maintanence Activity Costs Total Allocation Base (Machine Hours) Allocation Rate Lease Rent Activity Costs Total All Base (square meters used) Allocation Rate Page 2 of 5 ii. What is the budgeted total cost and the cost per unit of resources used to produce (a) economy led bulbs and (b) dimmable led bulbs? (20 points) Economy Bulbs Advanced Bulbs Direct materials Direct manufacturing labour O/H Allocated Setup Repair & Maintenance Lease Rent Total Manufacturing Costs Cost per Unit