Part I: The following data has been accumulated by a manufacturing company at the beginning of the year: Activity Driver Budgeted Cost $24,000 20 machine setups Activity Machine Setup Parts Handling Quality Inspections Total budgeted overhead 12,800 16,000 parts 100 inspections 15,000 $51,800 Information regarding the company's two products follows: Unit Information Units produced Sales Price per unit Direct Materials cost Jokers 950 units $105 per unit $33 per unit $53 per unit 2 per unit Jesters 720 units $175 per unit $43 per unit $63 per unit 2.5 per unit Direct Labor cost Direct Labor hours 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: Jokers Jesters Actual Activity Usage Machine Setups Parts Inspections 8 setups 10,000 parts 40 inspections 12 setups 6,000 parts 60 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