Menlo company produces two bracelets. Ladies bracelet (LB) and men's bracelet (MB), that sells for $123 and $108. In 2018 the company produced 15,000 (LB) and 10,000 (MB). Manufacturing overhead costs for 2028 was $900,000. Below are the direct costs for each bracelet. Menlo company would like to use activity based costing to allocate its manufacturing overhead costs. The company's tax rate is 21%. Direct manufacturing costs per bracelet LB MB. Direct Materials. $40. $30. Direct Labor. $13. $12. The following information is for activity based costing: Activity (Cost Driver) Manufacturing overhead costs. Machine setups. $240,000. Assembly. 350,000. Inspecting. 100,000. Packaging products. 60,000. General factory administration. 150,000. -900,000. Quantity of activity (cost driver). 1,500. Setups. 50,000 machine hours. 400 inspections. 25,000 units produced. 30,000 labor hours. Use of activity LB. MB. 500. 1,000 setups. 30,000 20,000 machine hours. 100. 300 inspections. 15,000. 10,000 units produced. 18,000. 12,000 labor hours. During 2027 the company sold 14,209 LB and 9,500 MB. Selected account balances for 2018. Research and development expense $120,000. Wages payable. 8,000. Depreciation of office equipment. 30,000. Unearned rent revenue. 4,000. Selling expend. 110,000. Prepaid advertising. 6,000. Administrative expenses. 115,000. Short term investments. 5,000. Restructuring costs. 20,000. Interest expense. 2,300. Investment revenue. 1,500. Dividend paid. 3,000. Accumulated depreciation, factory equipment 60,000. Retained earnings. 125,000. unrealized loss on trading investment. 2,500. Solve. (A) Calculate the activity rate for each cost driver (round to two decimal pts if needed). (B) Calculate the unit cost of each watch under ABC costing (round to two decimal pts if needed) (C) Prepare Menlo Company multiple step income statement for the year needed December 31, 2018.