Immersive Red Rom Seal company manufactures household items sold at trade shows. The items, classified as either Tables or Frames, are manufactured on a common assembly line. Although different direct materials are used, the direct labour cost is the same for each product line. The plant-wide rate for allocating manufacturing overhead to its products is no longer acceptable. The production manager has heard about activity-based costing and has assembled some information for use in changing the cost system to a cost driver concept. With the help of the accounting department, the manager has been able to establish the following relationships between production costs and some of the indirect manufacturing activities for July, along with the production data for the two product lines: Activity Cost Drive Number of parts $1.00 per part Allocation Rate Tables Frames Material handling Machining Assembly Inspection Machine hours Units began Number tested $15.00 per hour $1.60 per unit $2.00 per unit 2000 1300 205 300 1000 1300 100 1200 Direct costs: Tables $12,000 Labour Frames $12,000 e w W W w W l/tab:3717002657/19:8d288a77574241e8b9e0e72c3bb3d62f@thread.tacv2?threadid=19.8d288a77574241e8b9e0e earch Accessibility Mode Immersive Reader TWITTET SECU 2. Per 1001200 Direct costs: Frames Labour Materials Tables $12,000 $5,200 $12,000 $2,600 Required: Using activity-based costing determine the total production cost of each of the two product lines for July and the cost per unit assuming all units started were completed. Tables Frames Direct Manufacturing Costs Direct labour Direct materials $12,000 $12,000 5,200 2,600 Total direct costs 17,200 14,600 2003 Final Exa arranemen activity 1 199+