Housewire Inc. manufactures and distributes two types of household items, Scrubbies and Squeegies. They are manufactured on a common assembly line by the same direct labourers. Different materials are used in each type and the machinery is retooled for each product Until now, manufacuting overhead was allocated on basis of direct labour hours using plant wide rate. However, the production manager has been reading about activity based costing and wishes to institute it for Housewire's production operations. To that end, she has assembled the following information for September Activity Centre Cost Driver Allocation Rate Activity Scrubbie Material handling # of parts 1.00 per part 2,000 parts Machining Machine hrs. 15.00 per part 205 hours Assembly Units Started 1.60 per unit 1,000 units Inspection Number tested 2.00 per unit 100 units Activity Squeegie 1,300 parts 300 hours 1,300 units 1,200 units Direct costs: Labour ($24,000 total) Materials 789 hours 55.200 411 hours $2.600 a. For each of the following costing methods, determine the total manufacturing cost of each of the two product lines for September and the cost per unit, assuming that all units were started and completed in September: i) activity-based costing ii) a plant- wide manufacturing overhead rate based on direct labour-hours (compute plant-wide rate to nearest $0.01) b. One of the benefits often cited for activity-based costing is the elimination of any cross-subsidization. With reference to the results of the analysis in part (a), which of the two products is 1) undercosted ii) overcosted