Jackson Dairy has an ice cream plant with three identical production lines. It leases all of the machinery on the lines from an outside supplier, and has a total current monthly lease payment of $25,740. The production machines are available every working day of the month, or about 22 days per month. The company operates with one daily eight-hour shift. Normal preventive maintenance and minor repairs are performed for two hours each day, leaving six hours available for productive work on each production line. Thus the total available capacity per machine line was 22 days x6 hours per day or 132 hours per month. With three machine lines, the plant had machine time available for 396 hours each month. This results in a cost rate for machines of $65 per machine. Read the requirements. Requirement (a) Suppose that production-related computer resource expenses of $12,000 per month have been inadvertently overlooked for inclusion in the cost system. Explain how the time-driven ABC model should be updated to reflect this cost. The time-driven ABC model incorporate a capacity cost rate for computer resources, computed as $12,000 divided by the practical capacity computer hours per month. Requirement (b) Suppose that energy costs of $6,000 per month to run the machinery have also been inadvertently overlooked for inclusion in the cost system. How should the activity-based cost model be updated to include this cost, and what will be the effect on the machine hour rate? (Round rates per hour to the nearest cent.) Before the machinery energy costs were discovered, the machinery rate was $ per hour. The energy costs will the monthly lease costs, leading to of $ per hour. Requirements Requirements (a) Suppose that production-related computer resource expenses of $12,000 per month have been inadvertently overlooked for inclusion in the cost system. Explain how the time-driven ABC model should be updated to reflect this cost. (b) Suppose that energy costs of $6,000 per month to run the machinery have also been inadvertently overlooked for inclusion in the cost system. How should the activity-based cost model be updated to include this cost, and what will be the effect on the machine hour rate? (c) If the company wishes to introduce a new flavor, what information is needed in order to determine the cost of producing this new flavor