Pump_it_up Ltd produces two models of water pumps, the household model and the commercial model. Currently, the company uses a conventional costing system i.e., labour hours, to estimate its manufacturing overhead. The estimated production volumes are 1,000 units of household model and 500 units of commercial model in the forecasting period. Management suspects that the reliance solely on labour hours may not provide a reliable costing, the CFO experiments an alternative costing system, namely, Activity Based Costing (ABC) system, with following information provided. Cost driver consumption Activity OVERHEAD COST COST DRIVER Household Commercial Setup Number of setups 49,000 30 40 Machining 210.000 Machine hours 31000 41000 Assembly 541000 Labour hours 31000 31000 Packing Packing orders 1?,000 1,500 200 Note that you should NOT use thousand or million dividers (i.e., commas or space). neidler should you use dollar sign when providing your answers. Part 1 Using the information above, you are required to estimate the overhead costs for both Household and Commercial models using ABC. Household Commercial Setup Machining Assembly Packing TOTAL Overhead No. units Overhead per unit Assuming the prices of the household and commercial models and prime costs (i.e., direct materials and labor costs) are given below, you are required to (1) calculate the manufacturing overhead per labour hour, (2) the overhead cost per unit using labour hours, (3) the profit achieved using conventional costing system, and (4) the profit achieved using ABC system. Note that, for instance, if a loss of 60 is calculated, type as follows: -60 Household Commercial Selling Price per unit 367 620 Prime costs per unit 130 230 1. Overhead rate per labour hour 2. Overhead cost per unit using labour hour 3. Profit per unit using Conventional Costing 4. Profit per unit using ABC