Aerodec Inc., manufactures and sells two types of wooden deck chairs: Deluxe and Tourist. Annual sales in units, direct labour hours per unit, and total direct labour hours per year are as follows: TOTAL HOURS Deluxe deck chair: 2,000 units x 5 DLHs per unit 10.000 Tourist deck chair: 10,000 units x 4 DLHs per unit 40,000 TOTAL DIRECT LABOUR HOURS 50,000 Costs for materials and labour for one unit of each product are given below: Deluxe Tourist Direct materials $25 $17 Direct labour (at $12 per hour) $60 $48 Manufacturing overhead costs total $800,000 each year. The breakdown of these costs among the company's six activity cost pools is given below. Activity Category Cost Driver Estimated Consumption Consumption overhead cost of cost driver of cost driver (Deluxe) (Tourist) Labour related Direct labour hours $80,000 10,000 40,000 Machine setups Number of setups $150,000 3,000 2,000 Parts Number of parts $160,000 50 30 administration Production orders Number of orders $70,000 100 300 Material receipts Number of receipts $90,000 150 600 General factory Machine hours $250,000 12,000 28,000 Required: (1) Using a single plantwide cost driver rate based on direct labour hours, determine the cost of producing a unit of the deluxe and tourist deck chairs. (2) Determine the costs per deck chair using activity based costing. (3) Is ABC useful in this circumstance? Why? (4) What explanations would you give management from ABC analysis