Cullumber Inc. is a manufacturer of quality shoes. The company has always used a plant-wide allocation rate for allocating manufacturing overhead to its products. The plant manager believes it is time to change to a better method of cost allocation. The accounting department has established the following relationships between production activities and manufacturing overhead costs: Activities Cost Drivers Allocation Rate Material handling Number of parts $6.00 per part Assembly Labour hours 89.00 per hour Inspection Time spent by item at inspection station 15.00 per minute The previous plant-wide allocation rate method was based on direct manufacturing labour hours, and if that method is used, the allocation rate is $800 per labour hour. (a) Assume that a bat