Amazing Faucets Company manufactures and sells three styles of faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply: Projected sales in units BRASS 30,000 CHROME 50,000 WHITE 40,000 PER UNIT data: Selling price $40 $20 $30 $ 8 $15 $4 $3 $8 $ 9 $12 $3 $ $9 Direct materials Direct labor Overhead cost based on direct labor hours I (Traditional system) Hours per 1000-unit batch: Direct labor hours Machine hours Setup hours Inspection hours 40 25 1.0 30 10 25 0.5 20 30 10 1.0 20 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labor hours 2,900 hours Machine hours 2,400 hours Setups $465,500 95 setup hours Inspections $405,000 2,700 inspection hours $870.500 Required: a. Using the traditional system, determine the operating profit per unit for the chrome style of faucet. b. Determine the activity-cost-driver rate for setup costs and inspection costs. c. Using the ABC system, for the chrome style of faucet: 1. compute the estimated overhead costs per unit. 2. compute the estimated total operating profit d. Explain the difference between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why