Exercise 2. Burgandy Corporation makes plastic and wooden picture frames. The company has assigned $107.000 in monthly manufacturing overhead costs to two cost pools as follows: $67,000 to power costs, and $40,000 to production set-up costs. Additional monthly data is provided below: Plastic Frames Wooden Frames Sales revenue Direct materials Direct labor......... Machine hours....... Production runs Units produced and sold S254.000 $53,360 S33.360 107.420 65 59.000 $179.000 $38,360 $92,720 7.580 35 29.000 Power costs are allocated to products using machine hours as an activity base. Set-up costs are allocated to products based on the number of production runs each product line requires (a) Allocate manufacturing overhead from the activity cost pools to each product line. (b) Compare the total per-unit cost of manufacturing plastic frames and wooden frames. (c) On a per-unit basis, which product line appears to be most profitable