Scenario 5: Summer Time Corporation manufactures two products, Bocce Ball Sets and Croquet Sets. Croquet Sets were added as a product line two years ago. Croquet Sets are the more complex of the two products, requiring one hour of direct labour time per unit to manufacture, compared to one-half hour of direct labour time for Bocce Ball Set. Croquet Sets are produced on an automated production line. Indirect costs are currently allocated to the products on the basis of direct labour hours. The company estimated it would incur $332,500 in manufacturing overhead costs and produce 6,000 units of Croquet Sets and 20,000 units of Bocce Ball Sets during the current year. Unit costs for materials and direct labour are: Direct labour Bocce Ball Set $9 Croquet Set $18 Direct materials $12 $16 Indirect costs are: Estimated Estimated Activity Estimated Indirect Costs Bocce Ball Activity Sets Croquet Sets Total Activity cost pools/drivers: Machine setups $153,000 700 1,000 1,700 Purchase orders 27,500 300 200 500 Machine hours 128,000 5,000 11,000 16,000 Maintenance requests Total 24,000 $332,500 200 300 500 Required: a. b. C. why. Determine the unit cost of a Bocce Ball Set using traditional (simple) costing with hours as the allocation base. Determine the unit cost of a Bocce Ball Set using activity-based costing. Create a report to Summer Time Corporation that notes the differences and explains which methodology is better and