Kallapur Company manufactures two products: KAP1, which sells for $120, and QUIN, which sells for $220. Estimated cost and production data for the current year are as follows: KAP1 QUIN $45 $30 Direct materials cost $24. $60 Direct labor cost $12/hr) Estimated production (units) 25,000 15,000 In addition, fixed manufacturing overhead is estimated to be $2,000,000 and variable overhead is estimated to equal $3 per direct labor hour. Kallapur desires a 15 percent return on sales for all of its products. Instructions a. Calculate the target cost for both KAP1 and QUIN. KAP1 QUIN Target cost b-1. Estimate the total manufacturing cost per unit of each product if fixed overhead costs are assigned to products on the basis of estimated production in units. KAP1 QUIN Target cost