For several years, Rockhampton Flow Technology (RFT) has purchased 10,000 pumps annually from Prime Ltd. Because the price keeps increasing, reaching $68.40 per unit last year, RFTs management has asked for an estimate of the cost of manufacturing the pump in RFT's facilities. RFT makes stampings and castings and has little experience with products requiring assembly. The engineering, manufacturing and accounting departments have prepared a report for management that includes the estimate shown below for an assembly run of 10,000 pumps. Additional production employees would be hired to manufacture the pumps, but no additional equipment, space or supervision would be needed The report states that total costs for 10,000 units are estimated at $963,600, or $96.36 a unit. The current purchase price is $68.40 a unit, so the report recommends continued purchase of the product. no on qi oud 5 68 4ept recommends continued rchase a he prodauct Components (outside purchases) Assembly labor Manufacturing overhead General and administrative overhead $ 121,000 302,000 453,000 87,600 $963,600 Total costs Assembly labor consists of hourly production workers. Manufacturing overhead is applied to products on a direct-labor-dollar basis.Variable-overhead costs vary closely with direct-labor dollars Fixed overhead Variable overhead Manufacturing-overhead rate 50% 100% 150% of direct-labor dollars of direct-labor dollars of direct-labor dollars General and administrative overhead is applied at 10 percent of the total cost of material (or components), assembly labor, and manufacturing overhead. Required: 1-a. Was the analysis prepared by RTF's engineering, manufacturing, and accounting departments correct? 1-b. Calculate the relevant cost per unit