Question 4 Time: 33 minutes Total: 20 marks A company manufactures household items sold at trade shows. The items, classified as either Tables or Frames, are manufactured on a common assembly line. Although different direct materials are used, the direct labour cost is the same for each product line. The plant-wide rate for allocating manufacturing overhead to its products is no longer acceptable. The production manager has heard about activity-based costing and has assembled some information for use in changing the cost system to a cost driver concept. With the help of the accounting department, the manager has been able to establish the following relationships between production costs and some of the indirect manufacturing activities for July, along with the production data for the two product lines: activity Cost driver Allocatina ralerables frames Material handling Number of parts $2.30 per part 2.000 1.100 Machining Machinebours 315,00 per how205 300 Assembly Units began $1.60 per unit 1.000 1.300 Inspection Number tested $2.00 per mit 100 1.200 Direct costs: Tables Frames Labour $8.000 $8,000 Material: 57,200 $4,600 Submission Instructions: Using activity-based costing determine the total production cost of each of the two product lines for July and the cost per unit, assuming all units started were completed