highlands Industries has the following budget information available for Feb. Units manufactured - 30,000 Factory administration 65,000 Assembly - hr per unit x $12 Direct materials 2 pounds per unit x $4 Inspection $250 per batch of 1,000 units Manufacturing overhead $5 per unit Product development $20,000 Setup cost $15 per batch of 1,000

a. Use activity based costing to prepare a manufacturing cost budget for February. Clearly distinguish between unit, batch, and facility-level costs

b. the operating at highlands industries are concerned that the budgeting process is too time consuming and diverts attention from their current day to day responsibilities. Discuss the reason that highland should continue budgeting.