Earl Gyms Ltd manufactures three types of Gym equipment A, B and C The company has been experiencing steady declines in its profitability in recent times. Earl Gyms Ltd currently uses conventional product costing system whereby overhead costs are allocated on the basis of direct labour hours. The direct labour hours are estimated to be 34,000 hours. The Direct material and Direct Labour costs per unit for the three products are as below: Direct Material $180 $250 $300 Direct Labour $200 $100 $50 The management suspects that conventional product costing system used may have contributed to the profit declines. Therefore, the CFO implemented an alternative system namely, activity-based product costing system. Given below are each activity, its cost and its related activity driver, Activity Material handling Machining Cutting Total manufacturing cost Cost Activity Driver Number of $ 1,300,000 parts $ 536,000 Machine hours $ 884,000 Labour hours $ 2,720,000 The following information pertains to each product line of Earl Gyms Ltd for the year: Units to be produced Machine hours per unit Parts per unit Labour hours per unit A B 5000 2000 10,000 3 1 5 10 15 5 4 2 1 1) Calculate the predetermined overhead rate based on Direct labour hours (0.5 mark) Please only enter number do not use dollar sign or decimal point Predetermined Rate = 2) Calculate the cost per unit under conventional product costing system? (1.5 mark) Please only enter number do not use dollar sign or decimal point Product A Product B Product 3)Determine the total overhead allocated to each of the three products (4.5 marks) Please only enter number do not use dollar sign or decimal point. B Material handling Machining Cutting 4) Determine the total cost per unit of producing each product l' activity based costing were to be used (1.5 mark) Please only enter number do not use dollar sign or decimal point Product A Product Product c