Question 6 Calcarenite Pty Ltd plans to manufacture two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing system. Given below are each activity, its cost and its related activity driver Activity Material setups Material handling Cutting Assembly Finishing Cost Activity Driver $150,000 Number of setups $200,000 Number of parts $500,000 Number of parts $400,000 Direct labour hours $600,000 Number of units The level of activity for the year is: Lounge Patio 12,000 8,000 30 45 Units to be produced Number of setups Number of parts per unit Direct labour hours per unit 20 10 4 2 Required a) Under an activity based costing system, what is the activity cost per unit of activity driver for assembly? (6 marks) I b) Under an activity based costing system, what is the total cost of lounge chairs for the year? (10 marks)