In order to meet anticipated demand for the upcoming month, Sigma Company plans to rent three machines, each costing $50,000 per month, and hire four indirect workers, each costing $4,810 per month. The total cost of the three machines and four indirect workers comprises the total overhead cost at Sigma Company. Required a. Given the production plan, what is the deluxe product's planned total contribution margin? b. If Sigma Company computes a plantwide rate to allocate total overhead cost to the three products by dividing the sum of indirect labor cost and machine cost by planned total direct labor hours, what is the total overhead cost that will be allocated to the deluxe product, and what will be its resulting gross margin? c. If Sigma Company uses TDABC to allocate the indirect labor cost and the machine cost to the three products, what will be the total overhead cost allocated to the deluxe product, and what will be its resulting gross margin? Exercises 5-18 - Page 143 (6 points) Halifax Brass Company manufactures pumps and valves and uses a TDABC system. Last year, Halifax recorded the following data for assigning manufacturing overhead costs to its products: Unit cost estimates (Rates per Hour Total Unit Time Estimates (Hours Assigned to Products) Practical Capacity not Assigned to Products (Hours) Pumps Valves Machine setups and run time Labor for setups, receiving, and packing Selling general and administrative expenses $20.00 per machine hour $30.00 per labor hour $80.00 per engineering hour 1,500 1,800 300 5,000 6,000 200 $200 400 50 Halifax also developed the following information on revenues and costs other than manufacturing overhead. Total revenues Total direct labor cost Total direct materials cost Selling, general and administrative expenses $890,000 $120,000 $90,000 $100,000 Required a. Using the company's TDABC system, how much manufacturing overhead cost will be assigned to pumps? How much will be assigned to valves? b. What is the company's net income? (Assume the company sells the entire amount of the products it produces).