a) Compute the December total manufacturing costs.

b) Compute the unit costs for the Style A chairs.

c) Compute the unit costs for the Style B chairs.

ABC Company manufactures a variety of office chairs. The costing system was designed using an activity-based approach. The company produced two styles of chairs in December and the information of production are as follows: Direct Direct LaborNumber of Materials Hours Parts Style A 5,000 $ 400,000 7,500 100,000 Style B 100 $ 35,000 300 3,500 - Units Three activities have been identified and resource drivers are used to assign costs to each activity. The annual overhead activities, activity costs and other related data are as follows: Cost Budgeted Cost Allocation Costs Drivers Rate Material handling $ 200,000 Parts $ 0.25 Cutting $ 1,900,000 Parts $ 2.00 Assembly $ 1,600,000 Direct Labor Hours $ 15.00 There is no beginning and ending inventory. The direct labor rate is: $ 15.00 ABC Company uses X Company and Y Company to buy a specifie electronie componente for the manufacture of its tablets. It conducts two activities of testing and reordering of the components. After the component is inserted, the Company performs testing and if the component fails the test, the Company has to replenish the component. Activity information and other data needed for supplier costing are as follows: Activity cost caused by suppliers (testing failures and reordering as a result) Testing Reordering $ $ 502, 150 150,000 $ Supplier data Unit purchase price Units purchased Failed tests Number of reorders X Company 8.00 50,000 590 30 Y Company 10.00 10,000 15 (5 Marks) Required: Compute the unit cost from each supplier using Activity-based costing