Requirements 1. Compute the cost of the products shipped to the Munich Toy Museum gift shop. 2. Suppose the products made for the Munich Toy Museum gift shop required "Spielzeugmuseum" to be printed on each doll. Because of the automated process, printing the letters takes no extra time or materials, but it requires a special production setup for each product. Compute the cost of the products shipped to the Munich Toy Museum gift shop 3. Explain how the activity-based costing system helps Hasbron Toy Company to measure costs of individual products or orders better than a traditional system that allocates all non-materials costs based on direct labor. The Hasbron Toy Company makes a variety of dolls at its operation in Munich. Its manufacturing process is highly automated. A recently installed ABC system has four activity centers: (Click the icon to view the activity center data.) Two dolls are called "Kit" and "Ruthie." They require 0.50 and 0.90 kg of materials, respectively, at a materials cost of 4.50 for Kit and 5.40 for Ruthie. One computer-controlled assembly line makes all dolls. When a production run of a different doll is started, a setup procedure is required to reprogram the computers and make other changes in the process. Normally, 500 Kit dolls are produced per setup, but for Ruthie dolls, only 250 are produced per setup. Products are packed and shipped separately so a request from a customer for, say, three different products is considered three different orders. Suppose the gift shop at the Munich Toy Museum (Spielzeugmuseum) just placed an order for 150 Kit dolls and 50 Ruthie dolls. Read the requirements. Requirement 1. Compute the cost of the products shipped to the Munich Toy Museum gift shop. (Round to two decimal places.) Kit Ruthie Dolls Dolls x Unit costs: Data table 4.50 5.40 Direct materials Materials receiving and handling Cost per Driver Unit Production setup 0.80 per kg Cutting, sewing, and assembly Activity Center Cost Driver Materials receiving and handling Kilograms of materials Production setup Number of setups Cutting, sewing, and assembly Number of units Packing and shipping Number of orders 65 per setup Total unit cost 150 50 x Number of units 0.20 per unit 13 per order Total cost of dolls Packing and shipping 13 13 Total cost of order Print Done