Part B Umbrollas Company designs and builds kitchen cabinet for homes. Most of the kitchen cabinet are custom made but occasionally the company does mass production on order which normally comes from home contractors. Its budgeted manufacturing overhead costs for the year 2020 are as follows: Activity Cost Pools Amount Purchasing RM 1,750,000 Production (cutting, milling, finishing) 1,056,000 Machining 317,500 Inspecting 357,500 Utilities 541,200 Total budgeted overhead costs RM4 022.200 For the last three years, the company has been charging overhead to products on the basis of machine hours. For the year 2020, 200,000 machine hours are budgeted. Uno, owner of Umbrollas Company, is planning to implement the activity-based costing system to calculate costing of its product. The costing department budgeted the following information for the company: Cost Drivers Expected Use of Activity Cost Pool cost driver Purchasing Number of orders 6,000 Production (cutting, milling, finishing) Direct labor hours 88,000 Machining Machine hours 2,500 Inspecting Number of inspections 5,500 Utilities Square feet occupied 82,000 During this month, the company received an order for 30 kitchen cabinets from home contractors. The accountant prepares cost estimates, so that Uno can submit a contract price per kitchen cabinet to the contractor. The following data for the production of 30 kitchen cabinets are accumulated: Direct materials cost RM 220,000 Direct labor cost RM 235,000 Machine hours 20,000 Direct labor hours 34,000 Number of purchase orders 72 Number of inspections 50 Number of square feet occupied 2,500A B E Activity Cost Pool Total estimated overhead Expected use of cost driver Activity Based o/h ratesABOR x Actual Cost Driver Product 1 Product 2 1) Activity 1 RM XX x XX 1) Activity 1 RM XX x XX 1) Activity 1 RM XX x XX 1) Activity 1 RM XX x XX Total overhead cost units Overhead cost per unit