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 profita bility." The costaccounting system shows thatthe following costs apply to the PC and TV boards. PC Board TV Board Direct material $229 $149 Direct labor 4.8 hr. 1.8 hr. Machine time 1.5 hr. 1.8 hr. Variable manufacturing overhead is applied on the basis of directlabor hours. For 20x1, variable overhead is budgeted at $2,390,000, and directlabor hours are estimated at 288,250. The hourly rates for machine time and direct labor are $42 and $48, respectively. The company applies a materialhandling charge at 10 percent of material cost. This materialhandling charge is not included in variable manufacturing overhead. Total 20x1 expenditures for direct material are budgeted at $22,625,000. 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 Annual Activity Budgeted Cost Cost Driver for Cost Driver Procurement $ 988, 888 Number of parts 6,663,888 parts Production scheduling 498, 888 Number of boards 131,258 boards Packaging and shipping 9591333 Number of boards 131,258 boards Total $ 2: 379; 3553 Machine setup $ 932, 888 Number of setups 527,588 setups Hazardous waste disposal 116,888 Pounds of waste 27,388 pounds Quality control 1,138,888 Number of inspections 315,888 inspections General supplies 1521333 Number of boards 131,258 boards Total $ 2: 3'39; 333 Machine insertion $ 2,988,888 Number of parts 4,328,888 parts Manual insertion 6, 568,888 Number of parts 1,343,888 parts Navesoldering 3141333 Number of boards 131,258 boards Total $12, 214, 888 Required per Unit PC Board TV Board Parts: 25 36 Machine insertions 46 35 Manual insertions 29 1 Machine setups 5 4 Hazardous waste disposal, in lb. 8.48 8.83 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 of the 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 {)n 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 xed costs and prot in 20x1. [Round your intermediate calculations to 2 decimal places.) Mama