AP-6BLOD Kerox Company manufactures two types of laser printers, monochrome and multifunction. Currently manufacturing overhead is allocated based solely on the consumption of direct labor hours for the upcoming quarter, the company expects to produce 2.000 units of monochopenie printers and 1300 units of multifunction printers, and expects manufacturing overhead costs to be $25,000. ach monochrome and multifunction laser printer requires os direct labor hours and 0.7 direct to be hours, respectively, The following table outlines the selling price, material and tabor cost for each unit of monochrome and multifunction laser printers manufactured Selling Price Direct Material Direct Labor Monochrome $110 $20 $5 Multifunction $395 580 $22 The company is considering changing its current costing system to the ABC costing system. If it decides to use this method, it would separate the manufacturing support costs into three activities handling purchase orders, inspecting and setting up production flow. The budgeted manufacturing overhead cost for purchase orders, inspections and product setups are 10.0000 6.000 59.000, respectively. The following table Indicates the cost allocation usage for each product Total Driver Monochrome Multifunction Number of purchase orders 70 t 110 Number of inspections + 250 Number of setups 75 375 50 Traditional Rate $25,000 / 1,910 (2,000x.5)+(1,300x.7) = 1,910 86 Cost Management Strategies Chapter 4 Required Create a spreadsheet for part a and b. a) for each product calculate the manufacturing cost per unit under the content costing system using direct Labor hours to allocate manufacturing overhead Monochrome Multi-function Direct Materials 40,000 Direct Labor 10,000 Overhead 13,089 Total Cost 63,089 Cost/ unit $111.16 31.54 b) For each product, calculate the manufacturing cost per unit under the ABC costing system. Monochrome Multi-function Direct Material Direct Labor Purchase Order $3889 $6,111 Inspections 1,000 Set-ups 1,500 Total Cost 56,389 151,211 Cost/ unit