Shine Company produces two types of control devices: Standard and Deluxe. The price for Standard and Deluxe is set based upon total manufacturing cost per unit. The following data pertains the two products: Production and sales volume units Selling price Direct material Direct labor STANDARD DELUXE 60,000 40,000 $17.00 $20.00 $2.50 $6.20 $4.50 $7.20 In addition to direct material and direct labor costs, each product is charged with a portion of company's total factory overhead costs. Currently, Shine is allocating factory overhead costs to product lines based upon direct labor hours. Tom, the manager in charge of Deluxe operation, has raised concerns about the credibility of the cost data, Specifically, Tom belleves that actual manufacturing cost of Delude is less than what currently is reported. As a result, the price set for Deluxe is less competitive affecting sales volume. Furthermore, this Issue has affected negatively the moral of the employees working in Deluxe operations because of fear of downsizing Shine Company has hired Sherry, a Clayton State graduate, to look at the matter. Sherry has stated that the problem could be due to the method used for the allocation of factory overhead cost. She has pointed out that factory overhead costs are not traceable, and accuracy of the amount factory overhead assigned to each product line depends on the allocation method used, Upon preliminary study, Sherry has decided to revise the allocation of factory overhead costs using Activity Based Costins based on the following two activities - Supervision and Inspection activities. The following additional data on the two products have been compiled for this purpose: Activity Activity Cost Driver Activity Supervision Inspection Total factory overhead Activity Activity Cost Driver Cost $136,400 # of direct labor hours $162,800 # of Inspections $299,200 Activities demanded by Product Lines STANDARD DELUXE 24,000 DLH 20,000 DLH 50,400 inspections 31,000 inspections Total 44,000 DLH 81,400 inspections Compute total manufacturing costs per unit of Deluxe using activity-based costing for the allocation of factory overhead cost. Carry your overhead rate calculations up to three decimal points. 50,400 inspections inspections Inspections Compute total manufacturing cost per unit of Deluxe under current plant wide overhead allocation method based on direct labor hours Example of Answer: 4.67 or 0.30 or 2.00 (No comma, space, or $sign) non