Rebel Alliance Enterprises manufactures two types of drones: the X-Wing and the TIE Fighter. The company is currently using a traditional costing system, but is considering changing to an activity-based cost system. 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 August, along with the production data for the two product lines: Activity Cost Driver Material hand. Number of parts Machining Machine hours Assembly Units began Inspection Number tested Allocation Rate $37.00 per part $92.00 per hour $75.00 per unit $22.00 per unit X-Wing 3,200 1200 7,900 250 TIE Fighter 5,000 1800 10,050 1,200 Direct costs: X-Wing TIE Fighter Labour $155,000 $171,000 Materials $58,700 $77,500 Required: I 1. Using activity-based costing determine the total production cost of each of the two product lines for August and the cost per unit assuming all units started were completed. 2. Rebel Alliance sells the X-Wing drone for $225 each and the TIE Fighter for $240. Calculate the per unit contribution margin for each drone