Kumar Bouts Limited manufactures and selling beats. All of the company's sales come from two product the Hauler and the Deluse. The Hauler is a basic boat built with the minimum required components necessary for a successful eating and sells for $24,000. The Deluxe includes additional features unavailable on the Hauler, such as adjustable padded seats, moveable storage beses, and sod holders, and sells for $29,000. The boats are sold to retaile who then usually add an outboard motor and a trailer belone selling to the consumer. Kumar Bouts Limited management is meeting to discuss recent financial results and to plan for the future. Richard Rajan, the sales manager, advocates for keeping the prices of the two boats close in price since they share many similar ferieg, sire and weight, seating capacity, etc.). Mary Borkowski, the CEO of Kumar Boats, is concemed and has reviewed the financial information for both product lines. She has noticed that sales volume has been increasing while profits (as a percentage of sales) are decreasing Mary consulted with her production manager. Craig Steele, who informed her that he is doing his best to control costs but it is difficult since the proportion of the Deluxe boots being manufactured and sold is growing at a much faster rate than sales of the Hauler Mary has asked the CFO for more detailed financial information regarding the sales and manufacturing costs of each product line for the past year. The following information was provided to Mary. Deluse Direct materials cost per unit $12.300 $16,400 Direct labour hours per un " 116 Units sold 345 134 Manufacturing overhead in the past year was 5887 200 In the existing system, manufacturing overhead is applied on the basis of direct labour hours. The total direct labour hours for the past year were 22.180 The bourly rate for direct labour hours is $33. Selling and administrative costs for the past year was $1,468,000 To help Mary gain a better understanding of the costs of operations, she asked the CFO to provide her with information regarding the company's activities for the past year. Using an activity-based costing (ABC) approach, the CFO ghand the following information Activity Centre Cat Driver Materials handling Number of material m Number of seps Testing Number of testing ho Pachasing materials Number of purchase onders Activity Cast Activity Volume $210.500 $258,800 1,294 $168,000 1.500 testing hours 5249600 2.600 purchase onders Financial data for the two products, based on ABC analysis, is as follows Hauler Deluse Direct materials cost per unit $12.300 $16,400 Direct labour hours per unit " 116 Materials handling movements 4 32 Number of setups 2 12 Testing hours 2 14 Purchase orders required 3 15 Units sold 345 134 Required: (A) Compute unit cost using the existing costing system (ie, using a single, plantwide rate to apply overhead costs). Compute gross and not operating income generated for the company by the two products (B) Compute activity rates, rounding to the scared dollar