A company currently produces banger phones that requires 4 hours of machine time which is considered the scarce resource as a result of the productive capacity of the machines. The company has 80 machines. Each machine works 6 hours per day. The factory operates five (5) days per week and 50 weeks annually. The selling price per unit is $1,200 and direct material cost is $600. The total factory operating cost includes the conversion cost. The average direct labour hour rate is $45 per hour. Currently, the company employs 90 employees who all work 8 hours per day. Overheads are absorbed using direct labour hours. The budgeted overheads for the period are $7,000,000. While the budgeted direct labour hours were 200,000 hours. Required: (a) Calculate the return per factory hour and cost per factory hour. [8 marks] (b) Calculate the TPAR and advise management of the decision to take. [2 marks]