Question 1 (25 marks] Cookware Company manufactures two products, Deluxe and Regular. and uses a traditional TWOstage cost allocation. The first stage assigns all factory overhead costs to two production departments A and 13. based on machinehours. The second stage uses direct labor hours to allocate overhead to individual products. For 2022. the rm budgeted $1.100.000 total factory overhead cost for these operations. Production Department A Production Department 13 Machinehours 4.000 [6.000 Direct laborhours 20,000 [0,000 The following information relates to the firm's operations for the month of April: Deluxe Regular Units produced and sold 2.00 800 Unit cost of direct materials $ 100 $50 Hourly rate of direct labor $25 $2.0 Direct laborhours in Department A per unit 2.0 2.0 Direct labor-hours in Department B per unit 15 1.0 Cookware Company is considering implementing an activitybased costing system. [ts management accountant has collected the following information for activity cost analysis for 2.022: Activity Budgeted Overhead {3) Cost Driver Materials movement 7,000 Number of production runs Machine setups 500,000 Number of setups Inspections 588.000 Number ofunits produced Shipment 5,000 Number of shipments Budgeted Driver Co nsumptien (Zest Driver Quantity Deluxe Regular Number of production runs 350 [5 20 Number of setups 500 25 50 Number of units produced [9,600 200 800 Number of shipments 2.50 50 [00 Required: 3. Calculate the overhead cost per unit for each of the two products under the existing TWO stage cost allocation. ([3 marks) b. Calculate the overhead cost per unit for each of the two products under the proposed Activity Based lCosting. ([2. marks)