Exercise 5-29 (parts a-b) (5-pts) At its manufacturing plant in Duluth, Minnesota, Endo Electronics Company manufactures two products, X21 and Y37 For many years, the company has used a simple plant wide manufacturing support cost rate based on direct labor hours. A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity-based costing system that relies on a separate rate for each manufacturing activity that causes support costs. After studying the plant's manufacturing activities and costs, the plan accountant has collected the following data for last year: Item X21 Y37 Units produced and sold Direct labor hours used Direct labor cost Number of times handled Number of parts Number of design changes Number of product setups 100,000 300,000 $1,000,000 $4,500,000 20,000 8,000 1,000 6,000 0,000 100,000 40,000 12,000 2,000 8,000 The accountant has also determined that actual manufacturing support costs incurred last year were as follows: Cost Pool Handlin Number of parts Design changes Setups Total Activity Costs $3,000,000 2,400,000 3,300,000 2,800,000 $11,500,000 The direct materials cost for product X21 is $120 per unit, while for product Y37 it is $140 per unit. Required a) Determine the unit cost of each product using direct labor hours to allocate all manufacturing support costs b) Determine the unit cost of each product using activity-based costing