QUESTION 20 Bandit Manufacturing produces three products: Desk Lamps,Floor Lamps and Ceiling Lamps The following information is available for each product. Desk Floor Ceiling Direct material cost per unit Direct labor cost per hour $2.00 $8.00 $10.00 15.00 $%16.75 $18.00 Bandit Manufacturing presently applies overhead using a predetermined rate based on direct labor hours. Estimated Diredt Labor hours for the year are 132,026. The product leader for Floor has suggested that Bandit Manufacturing switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year Recommended Estimated Estimated Cost Cost Driver Cost Activity DriverUnits Purchase Orders $33,912 1256 Purchase Ordering Cost Machine Hours $1.425,000 12500 Hours Compliance $125,400 110 Test Total OH Cost $1,584,312 Machine Operations EnvironmentalCompliance C Actual January Production Desk Floor Ceiling ,200 5,800 4,100 4,250 Number of UnitsProduced 5,875 Direct Labor Hours 3,150 Activity Recommended Estimated Estimated Cost Cost Driver Cost DriverUnits Ordering Cost Purchase Orders $33,912 1256 Purchase Orders Machine Operations Machine Hours $1,425,000 12500 Hours Compliance $125,400 110 Test Total OH Cost $1,584,312 EnvironmentalCompliance Test Actual January Production Floor Ceiling ,200 5,800 Desk Number of UnitsProduced 5,875 Direct Labor Hours 3,1500 250 206 442 375 Machine Hours Compliance Test Purchase Orders 19 15 14 What is the total prime cost for Ceiling Lamps? , a, $185,500 b. $127,500 $134,500 O d, $58,000