| applicable Problems are available in Connect. ctivity-based costing MedTech Inc. manufactures and sells diagnostic equipment PL ed in the medical profession. Its job costing system was designed using an activity to sed costing approach. Direct materials and direct labor costs are accumulated sep- ately , along with information concerning four manufacturing overhead cost drivers ctivities). Assume that the direct labor rate is $20 per hour and that there were no ginning inventories. The following information was available for 2019, based on an pected production level of 400,000 units for the year: Activity Budgeted Cost Driver Used Cost Cost Driver Costs for 2016 as Allocation Base Allocation Rate $3,600,000 aterials handling $ 1.50 per part Number of parts used 11.00 per hour Number of machine hours 8,800,000 liling and grinding 5.00 per hou Direct labor hours worked 6,000,000 ssembly and inspection 3.00 per und Number of units tested 1,200,000 esting The following production, costs, and activities occurred during the month of August: Units Direct Number Machine Produced/Tested Direct Materials Costs of Parts Used Hours Labor Hours 50,000 $3,500,000 275,000 95,000 160,000 Required: a. Calculate the total manufacturing costs and the cost per unit produced and tested during the month of August for MedTech. b. Explain the advantages of the ABC approach relative to using a single predeter- mined overhead application rate based on direct labor hours. (Note: You do not have to calculate the overhead that would be applied for the month of August using this alternative method.)