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Question 1 (16 marks) Zap Mobile manufactures two models of cellphone. Zap 2000 is a basic model with 128 GB data storage and Zap

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Question 1 (16 marks) Zap Mobile manufactures two models of cellphone. Zap 2000 is a basic model with 128 GB data storage and Zap Ultra has 512 GB storage and can take videos in 8k. Data regarding the two product lines are as follows: Expected production Direct materials cost Direct labour cost Zap 2000 20,000 units $28.75 per unit $20.25 per unit Zap Ultra 12,000 units $51.50 per unit $36.25 per unit Zap is considering implementing an activity-based costing system in its plant and has identified three primary activities. Data on these activities are as follows: Zap 2000 Machine processing Quality control Shipping 30,000 machine hours 4,000 inspection hours 200 shipments Zap Ultra 36,000 machine hours 4,000 inspection hours 120 shipments Budgeted Cost $561,000 $240,000 $16,000 Required: 1. Calculate the manufacturing overhead rate for each activity using ABC (6 marks) 2. Calculate the unit cost of each model of phone using ABC (10 marks)

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