5-21 ABC, process costing. Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Mathematical Financial Annual production in units 50,000 100,000 Direct material costs $150,000 $300,000 Direct manufacturing labor costs $ 50,000 $100,000 Direct manufacturing labor-hours 2,500 5,000 Machine-hours 25,000 50,000 Number of production runs 50 50 Inspection hours 1,000 500 Total manufacturing overhead costs are as follows: Total Machining costs $375,000 Setup costs 120,000 Inspection costs 105,000 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product 2. Compute the manufacturing cost per unit for each product. 3. How might Parker's managers use the new cost information from its activity-based costing system to better manage its business