PS.483 (LO 1.2) National Steel Company has budgeted manufacturing overhead costs of $25 million. It has alocated overhead on a plant-wicie basis to its two products Standard Steel and Deluxe Steely using machine hours, which are estimated to be 100.000 for the current year. The company has decided to experiment with cavity-based posting and has created five activity cost pools and related activity cost drivers as follows: Assig overhead coses using traditional casting and ABC compare resus Activity Centre Material handing Cost Driver Number of moves Estimated Overhead $ 250,000 Estimated Activity 50,000 moves 200,000 4.000 orders Purchase Number of orders orders Product desting Number of tests Machine sit-up Number of set 450.000 600,000 9.000 tests 6.000 set-ups Machining Machine hours 1,000,000 100,000 machine hours Each one of the products requires the following Standard Steel Deluxe Direct materials costs 5200 1483/1416 Direct labour costs $100 Purchase orders 2 3 Machine set-up 5 10 Product Desting Machining 50 50 Material handing 5 10 Instructions 2 4 a. Under traditional product casting using machine hours. calculate the total manufacturing cost per unit of both products Deluxe Steel 91,620 ts. Under ABC, prepare a schedule showing the calculation of the activity based overhead rates (per cost driver) $100 persetup C. Calculate the tal manufacturing cost per unit for both products under ABC Deluxe Steel 52.270 d. Be Witte a mom to the president of the company discussing the implications of your analysis for the companys plans in this memo, provide a brief descrison of ABC, as wel as an explanaton of how the traditional approach can result in distortions. Sp.49RV11. 21 Saar Manfarna som ble nans in