Dreamin of Summer Co. makes all things beach chairs, umbrellas, towels, coolers toys, etc. With the next summer season approaching, they are evaluating the two beach toy packages that they currently selt: the Basic and the Deluxe Alltoys are made using plastic molding machines resins are heated and injected into the molds for each toy, then allowed to cool Dreamin of Summer uses an activity based costing system, since they believe this more refined system helps them to understand their costs better See below for relevant problem data for the activity based costing system Some relevant information for the past year: (unit means one bag of toys Basic Deluxe Number of units sold 350.000 300,000 Sales price per unit $7.00 $13.00 Direct materials per $0.25 $100 unit $0.50 $300 Direct labor dollars per unit In addition, Dreamin of Summer decides to break total indirect costs into the following cost pools, with correspondine cost-allocation bases Darla Deluxe Molding machine operations $1,200,000 4 Molding machine hours per unit Ordering costs $100,000 250 750 Total number of orders for each product (not per unit for each product in total) $200.000 Shipping Costs Pounds per unit Other Administrative Costs $950.000 Increase with direct labor dollars Total 52450.000 Under the ABC system, molding machine costs will be allocated at a rate of per machine hour 30334 50.70 5377 $1.35