ACC 321 Group Projeet (chapter 5) e) Predict whlich one of the products is subsidizing the others costs &why? Acrodec, Inc, manufactures and sells two products, X and Y. Annual sales in units, labor time per unit, and total manufacturing time per year are provided below Total Hours Product Y: 10,000 units X 4 hours Total hours Costs for materials and labor for one unit of each product are given below: Product XY 25 $17 Direci materials Diect labor (at 56 per bour) Manufacturing overhead costs total $800,000 each year. The breakdown of these costs between the company's six activity centers is given below. The cost driver for each activity center is shown in parentheses Estimated Expected Activity-Cost Driver Overbe Cests Total Product X Product Y Activity Center (and Cost Driver) Labor related (direct labor-kwn) Machine setups (number of selups) Product sesting (sumber of tests Production orders (eumber of orders Material receipts (number od receipts) General faciory (machine-hours $00,000 5 0 150,000 160,000 70,0008.000 3,000 4,000 300 250,000 40,000 12,000 a) Calculate the cost per unit for X & Y using the traditional (plantwide) rate for indirect costs b) Can you identify any sigas that there may be some problems with the costing of the products