In Ltd manufactures two different models of its famous video game console: the Futurex and SuperX models. The company has producing the FutureX model for 10 years; whereas the SuperX model was introduced this year to appeal to a wider variety of sumers and capture a larger segment of the video game market. Once the SuperX product line was introduced, profits declined dly. Management has become concerned about the accuracy of their costing system as sales of the SuperX system have been easing rapidly since being released. lin currently allocates manufacturing overhead using direct labor hours as the cost driver. The company has estimated it will ur $2,200,000 in manufacturing overhead costs and produce 55,000 units of the FutureX model and 7,500 units of the SuperX del. The following information pertains to the production of the Futurex and SuperX models: Futurex SuperX Direct Labour Hours per unit 2.5 3.5 Direct materials per unit $28 $52 Direct Labour per unit $38 $67 Selling Price $120 $220 Required A) Calculate the cost to produce one unit of the FutureX and SuperX models using the current method of allocating manufacturing overhead (traditional costing). (3 marks) B) The company has decided it wants to switch to Activity-Based Costing, and has identified the following four activities relevant to producing both the FutureX and SuperX lines. The relevant amounts for 2022 are: Total units of Activity Cost Driver Cost driver FutureX SuperX Shipping Number of shipments 450,000 840 400 440 Quality Control Number of inspections 500,000 2,300 900 1,400 Machine Setups Number of setups 650,000 330,000 190,000 140,000 Machine Maintenance Machine hours 600,000 450,000 330,000 120,000 20 $ 2,200,000 Using the activity based costing data above, compute the total cost to manufacture one unit of each model (6 marks) 2 23 [C) Briefly explain the difference between how overhead is treated between ABC and traditional costing, and this difference's overall impact on costing the SuperX model? (1 mark) 24