3- The Fallon Company manufactures a variety of handcrafted bed frames. The company's manufacturing activities and related data for the current year follow: Manufacturing Estimated cost Cost driver used as Estimated volume Activity allocation base for cost driver Materials handling $ 400 000 Number of parts 800 000 parts Cutting 1 200 000 Machine hours 40 000 hours Assembly 3 000 000 Direct labour hours 150 000 hours Wood staining 1 320 000 Number of frames stained 60 000 frames Two styles of bed frames were produced in July: a wood frame with fewer parts, and a metal frame that required no staining activities. Direct labor is paid $25 per hour. Their quantities, direct material costs and other data follow: Units Direct Machine Number of Direct labor Produced material hours of parts hours Wood frames 5 000 $600 000 5 000 100 000 6 000 Metal frames 1 000 200 000 500 10 000 3 000 Required (a) Compute the ABC cost allocation rates and then calculate total manufacturing costs and unit costs of the wood and metal frames. (b) Suppose non-manufacturing activities, such as product design, were analyzed and allocated to the wood frame at $10 each and the metal frame at $15 each. Moreover, similar analyses were conducted of other non-manufacturing activities, such as distribution, marketing and customer service. The support costs allocated were $50 per wood frame and $80 per metal frame. Calculate the product cost per unit including the non-manufacturing costs