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 83,000 of the TV boards in 20x1 at a price of $490 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 premium price. The 20x1 plans Include the sale of 58,000 PC boards at $835 per unit. Manchester's management group is meeting to discuss how to spend the sales and promotion dollars for 20x1.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 sald, "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 premlum 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. PC Board $247 Direct material Direct labor Machine time TV Board 9157 2.0 hr. 0.5 hr. 3.0 hr. 1.5 hr. Variable manufacturing overhead is applied on the basis of direct-labor hours. For 20x1, variable overhead is budgeted at $2,510,000, and direct-labor hours are estimated at 357,000. The hourly rates for machine time and direct labor are $34 and $42, respectively. The company applies a material handling charge at 10 percent of material cost. This material handling charge is not included in variable manufacturing overhead. Total 20x1 expenditures for direct material are budgeted at $27,357,000. 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 help 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." Cost Driver Number of parts Number of boards Number of boards Budgeted Annual Activity for Cost Driver 9.376,500 parts 149,050 boards 149,050 boards Budgeted Coat Procurement 980.000 Production scheduling 530,000 Packaging and shipping 1,060,000 Total $ 2,570,000 Machine setup S9648000 Hazardous waste disposal 132,000 Quality control 1.228.000 General supplies 186.000 Total $ 2,510,000 Machine insertion $ 3,300,000 Manual insertion 9.800.000 Wave-soldering 354,000 Total $13,454,000 Number of setups Pounds of waste Number of inspections Number of boards 653,100 setups 44,373 pounda 200,950 Inspections 148.050 boards Number of parts Number of parts Number of boards 6,559,000 parts 2.701.000 parts 140056 boards PO Board TV Board Required per Unit Parts Machine insertions Manual insertions Machine metus Hazardous waste disponin Inspections 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 20x1. 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 20x1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 20x1. (Round your intermediate calculations to 2 decimal places.) PC Board TV Board Total contribution margin 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 20x1. 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 20x1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 20x1. (Round your intermediate calculations to 2 decimal places.) PC Board TV Board Total contribution margin