Use below information for Questions $5$ to $6$:

Luxury Furniture designs and builds factory$-$made, premium, wood armoires for homes. All are of white oak. Its

budgeted MOH costs for the year $2017$ are as follows.

For the last $4$ years, Luxury Furniture has been charging overhead to products on the basis of materials cost. For the

year $2017,$ materials cost of $$580,000$ were budgeted. Jim Brigham, owner$-$manager of Luxury Furniture, recently

directed his accountant, Bob Borke, to implement the ABC system that he has repeatedly proposed. At Jim Brigham's

request, Bob and the production foreman identify the following cost drivers and their usage for the previously budgeted

MOH cost pools.

Debbie Steiner, sales manager, has received an order for $12$ luxury armoires from Thom's Interior Design. At Debbie's

request, Bob prepares cost estimates for producing $12$ armoires so Debbie can submit a contract price per armoire to

Thom's. He accumulates the following data for the production of $12$ armoires.

Q$-5)$ What is the unit manufacturing cost per armoire under traditional casting?

Q$-6)$ What is the unit manufacturing cost per armoire under the proposed activity$-$based costing?