Question 2 Bee Seng Manufacturing plans to use activity-based costing to determine the cost of the company best-selling product, OptimaX. It presently uses a single plant-wide factory overhead rate for allocating factory overhead to its products, based on direct labour hours. For the current period, the company's cost accountant estimated that total overhead costs incurred would be $1,400,000 and that a total of 175,000 direct labour hours would be worked The company determined that it performed four major activities in the production of its products. These activities, along with their expected costs, are as follows: Production Support Budgeted Expected Activities Cost Cost Driver Transactions 400 $440,000Number of setups 330,000 Number of production orders 250,000 Number of inspections Setup cost Production control 500 500 Quality control Materials management 380.000Number of material orders 190 Total $1.400.000 Bee Seng estimated the following activity-base usage quantities and units produced for ptmaX OntimaX Number of units 10,000 Direct material cost S100,000 Direct labour cost $50,000 Direct labour hours 25,000 Number of setups 80 Number of production orders 70 100 Number of inspections Number of material orders 40 Required: (a) Determine the cost per unit for the product OptimaX under the single plant- wide factory overhead rate method. (8 marks) (b) Apply activity-based costing to determine the cost per unit for product OptimaX. (12 marks) How does activity-based costing helps the company in the pricing decision of OptimaX? (c)