Exercise 5-27 (Algo) Activity-Based Costing in the Fashion Apparel Industry [LO 5-2,5-3] Fleet Street Incorporated a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (35%), skirts (40%), dresses (15%), and other (10%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.45 per unit produced. The results for the trousers line, using the volume-based approach, are as follows: Number of units produced Price (all figures in ) Total revenue Direct materials Direct labor Overhead (volume-based) Total product cost Nonmanufacturing expenses Total cost 12,000 27.44 329,280 54,100 180,700 29,400 264,200 49,300 313,500 Profit margin for trousers 15,780 Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line, is as follows: Pattern cutting Grading Lay planning Sewing Finishing Inspection Boxing up Storage Required: 37,310 31,900 31,000 35,600 23,700 10,600 5,700 11,400 1. Determine the profit margin for trousers using ABC. Profit margin