29. The Pikes Peak Leather Company manufactures leather handbags and moccasins. The company ha factory overhead rate method but has decided to evaluate activity based costing to allocate factory ove overhead estimated per unit together with direct materials and direct labor will help determine selling Total budgeted factory overhead cost $360,000 Purchase QC Sewing - Cutting direct labor direct labor Set-Ups Inspections Orders 20 80 1,000 Products hours hours 100 300 60,000 80,00 100,000 140,00d 60,000 40,00 500 Handbags Moccasins 400 800 Total units $80,000| $10,000 $20,00 $40,000 $210,000 Budgeted Dollars Calculate the amount of factory overhead to be allocated to each unit using activity based costing. produce 60,000 handbags and 40,000 moccasins. HINT: Calculate each activity percentage for th apply that to the budgeted cost/activity. HANDBAGS Cutting Class Co.'s prodution budget for Product X fowr the year ended Decessber 31 is as follows Eroduct X 80,000 85,000 eired endling inventry,Dee.3 Purple's prodaction operations, Materials A & B are required to make Product X. The quantinies ef to be ased for each unit of product are as follows: Matorial A0.50 pound per unit Material B pound per unit The prices of direct materials are as follows: Maicrial A $0.60 per pound B $1.70 per pound (1) Determine the number of unit X that needs to be manufactured for the period. of $ (2) Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). com