The following data has been accumulated by a manufacturing company at the beginning of the year: Activity Budgeted Cost Activity Driver Machine Setup $24,000 20 machine setups Parts Handling 12,800 16,000 parts Quality Inspections 15,000 100 inspections Total budgeted overhead $51.800 Information regarding the company's two products follows: Unit Information Jokers Jesters Units produced 950 units 720 units Sales Price per unit $105 per unit $175 per unit Direct Materials cost $33 per unit $43 per unit Direct Labor cost $53 per unit $63 per unit Direct Labor hours 2 per unit 2.5 per unit Round amounts to 2 decimal places. Part I Required: a. Using a plantwide overhead rate based on 3,700 budgeted direct labor hours, compute the overhead cost per unit and total product cost per unit for each product. b. Calculate the gross profit per unit for each product using the product cost determined in item a above. Part II: The following additional information regarding production activities for the two products follows: Actual Activity Usage Jokers Jesters Machine Setups 8 setups 12 setups Parts 10,000 parts 6,000 parts 60 inspections Inspections 40 inspections Part II Required: a. Compute the overhead activity rates that would be used in activity based costing for this company. b. Allocate overhead cost to Jokers and Jesters and compute overhead cost per unit for each product using activity based costing. c. Compute the total cost per unit for each product using activity based costing. d. Compute the gross profit per unit using activity based costing. e. Which approach, the traditional single plant-wide pre-determined overhead rate (POHR) or activity based costing produces the more accurate results?