Manchester Technology, Inc. manufactures several different types of printed circuit boards; however, two of the boards account for the majority of the company's sales. The first of these boards, a television circuit board, has been a standard in the industry for several years. The market for this type of board is competitive and price-sensitive. Manchester plans to sell 77,000 of the TV boards in 201 at a price of $430 per unit. The second high-volume product, a personal computer circuit board, is a recent addition to Manchester's product line. Because the PC board incorporates the latest technology, it can be sold at a premlum price. The 20xi plans include the sale of 52,000PC boards at $805 per unit. Manchester's management group is meeting to discuss how to spend the sales and promotion dollars for 201. The sales manager believes that the market share for the TV board could be expanded by concentrating Manchester's promotional efforts in this area. In response to this suggestion, the production manager said, "Why don't you go after a bigger market for the PC board? The cost sheets that I get show that the contribution from a PC board is significantly larger than the contribution from a TV board. I know we get a premium price for the PC board. Selling it should help overall profitability." The cost-accounting system shows that the following costs apply to the PC and TV boards. Variable manufacturing overhead is applied on the basis of direct-labor hours. For 201, variable overhead is budgeted at $2,420,000, and direct-labor hours are estimated at 352,800 . The hourly rates for machine time and direct labor are $22 and $30, respectively. Tho company applies a material-handling charge at to percent of material cost. This material-handling charge is not included in variable manufacturing overhead. Total 201 expenditures for direct material are budgeted at $24,159,000. Andrew Fulton, Manchester's controller, believes that before the management group proceeds with the discussion about allocating sales and promotional dollars to individual products, it might be worthwhile to look at these products on the basis of the activities involved in their production. Fulton has prepared the following schedule to heip the management group understand this concept. "Using this information," Fulton explained, "we can calculate an activity-based cost for each TV board and each PC board and then compare it to the standard cost we have been using. The only cost that remains the same for both cost methods is the cost of direct material. The cost drivers will replace the direct labor, machine time, and overhead costs in the old standard cost figures." Required: 1. Identify at least four general advantages associated with activity-based costing. 2. On the basis of Manchester's unit cost data given in the problem, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 201. 3. Using activity-based costing, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 201. Complete this question by entering your answers in the tabs below. On the basis of Manchester's unit cost data given in the problem, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 201. (Round your intermediate calculations to 2 decimal places.) Manchester Technology, Inc. manufactures several different types of printed circuit boards; however, two of the boards account for the majority of the company's sales. The first of these boards, a television circuit board, has been a standard in the industry for several years. The market for this type of board is competitive and price-sensitive. Manchester plans to sell 77,000 of the TV boards in 201 at a price of $430 per unit. The second high-volume product, a personal computer circuit board, is a recent addition to Manchester's product line. Because the PC board incorporates the latest technology, it can be sold at a premlum price. The 20xi plans include the sale of 52,000PC boards at $805 per unit. Manchester's management group is meeting to discuss how to spend the sales and promotion dollars for 201. The sales manager believes that the market share for the TV board could be expanded by concentrating Manchester's promotional efforts in this area. In response to this suggestion, the production manager said, "Why don't you go after a bigger market for the PC board? The cost sheets that I get show that the contribution from a PC board is significantly larger than the contribution from a TV board. I know we get a premium price for the PC board. Selling it should help overall profitability." The cost-accounting system shows that the following costs apply to the PC and TV boards. Variable manufacturing overhead is applied on the basis of direct-labor hours. For 201, variable overhead is budgeted at $2,420,000, and direct-labor hours are estimated at 352,800 . The hourly rates for machine time and direct labor are $22 and $30, respectively. Tho company applies a material-handling charge at to percent of material cost. This material-handling charge is not included in variable manufacturing overhead. Total 201 expenditures for direct material are budgeted at $24,159,000. Andrew Fulton, Manchester's controller, believes that before the management group proceeds with the discussion about allocating sales and promotional dollars to individual products, it might be worthwhile to look at these products on the basis of the activities involved in their production. Fulton has prepared the following schedule to heip the management group understand this concept. "Using this information," Fulton explained, "we can calculate an activity-based cost for each TV board and each PC board and then compare it to the standard cost we have been using. The only cost that remains the same for both cost methods is the cost of direct material. The cost drivers will replace the direct labor, machine time, and overhead costs in the old standard cost figures." Required: 1. Identify at least four general advantages associated with activity-based costing. 2. On the basis of Manchester's unit cost data given in the problem, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 201. 3. Using activity-based costing, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 201. Complete this question by entering your answers in the tabs below. On the basis of Manchester's unit cost data given in the problem, calculate the total amount that each of the two product lines will contribute toward covering fixed costs and profit in 201. (Round your intermediate calculations to 2 decimal places.)