Need help with problem number 5-30 Homework 5-30 Item Deluxe Regular Direct materials cost $45 $30 Direct labor cost 20 10 Selling price 140 80 A) Compute the manufacturing support cost driver rate for this year B) Determine the cost to manufacture one unit of each model. C) The company has decided to trace manufacturing support costs to four activities. Folllowing are the amount of manufacturing support costs traceable to the four activities this year: Cost Driver Units Demanded Activity Cost Driver Cost Total Deluxe Regular Purchase Orders Number of orders $180,000 600 200 400 Quality Control Number of inspections 250,000 2000 1000 1000 Product Setups Number of setups 220,000 200 100 100 Machine Maintenance Machine hours 350,000 35000 20000 15000 $1,000,000 Compute the total cost to manufacture one unit of each model. D) Compare the manufacturing activity resources demanded per unit of the regular model and per unit of the deluxe model. Why did the old costing system undercost the deluxe model? E) Is the deluxe model as profitable as the company thinks it is under the old costing system? Explain. F) What should the Manhattan Company do to improve its profitability? Consider pricing and product-level changes among your suggestions. Who should be ivolved in implementing your recommendations