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3. (15 points) Stage Two ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: Activity Cost Pool Activity Cost Activity Cost Driver Machine setup 5720,000 12,000 setup hours Materials handing 3,000 tons of materials Machine operation 680,000 10,000 machine hours The following data are for the production of single batches of two products, C23 Cams and U2 Shafts, during the month of August: 120,000 C23 Cams U2 Shafts Units produced Machine hours Direct labor hours. Direct labor cost. Direct materials cost Tons of materials Setup hours 500 4 200 $ 5,000 $20,000 13 3 300 5 400 $10,000 $15,000 8 7 Required Determine the unit costs of C23 Cams and U2 Shafts using ABC