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 pricesensitive. Manchester plans to sell l39,000 of the TV boards in 20x1 at a price of $430 per unit. The second highvolume 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 44,000 PC boards at $750 per unit. Manchester's management group is meeting to discuss how to spend the sales and promotion dollars for 20x1. The sales manager believes thatthe 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 | get show that the contribution from a PC board is signicantly 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. PC Board TV Board Direct material $223 $143 Direct labor 3.5 hr. 1.6 hr. Machine time 1.5 hr. 1.6 hr. Variable manufacturing overhead is applied on the basis of directlabor hours. For 20x1, variable overhead is budgeted at $2,300,000, and directlabor hours are estimated at 234,150. The hourly rates for machine time and direct labor are $28 and $36, 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 $19,679,000. 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 activitybased 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 gures." Budgeted cost Procurement Production scheduling Packaging and shipping Total Machine setup Hazardous waste disposal Quality control General supplies Total Machine insertion Manual insertion wave-soldering Total $ 343,333 453,333 323,333 $ 2, 223, 333 s 333, 333 134,333 1,144,333 144,333 $ 2,333,333 $ 2,533,333 4, 331, 333 234, 333 $11, 234, 333 Cost Driver Number of parts Number Number Number Pounds Number Number Number Number Number of of of of of of of of of boards boards setups waste inspections boards parts parts boards Budgeted Annual Activity for Cost Driver 4,391,333 parts 118,558 boards 118,558 boards 283,568 setups 32,65? pounds 283,568 inspections 118,558 boards 3,681,688 parts 1,313,333 parts 118,558 boards Required per Unit PC Board TV Board Parts: 53 33 Machine insertions 4-6 29 Manual insertions 23 1 Machine setups 3 2 Hazardous waste disposal, in lb. 3.50 8.36 Inspections 3 2 Required: 1. Identify at least four general advantages associated with activitybased costing. 1 On the basis of Manchester's unit cost data given in the problem, calculate the total amount that each ofthe two product lines will contribute toward covering fixed costs and prot 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 prot in 20x1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using activity-based ousting, calculate the total amount that each of the two product lines will contribute toward oovering xed nests and prot in 20x1. (Round your intermediate calculations to 2 decimal places.) Totalwmn-monmargm