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 manufacturing overhead costs for the year 2017 are as follows. Overhead Cost Pools Purchasing Amont (8) 44,000 Handling materials 50,000 Production (cutting, milling, finishing) 132.000 Setting up machines 85,000 Inspecting 60,000 Inventory control (raw materials and finished goods) Utilities 82,000 100,000 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 $540,000 were budgeted. Jim Brigham, owner-manager of Luxury Furniture, recently directed his accountant, Bob Borke, to implement the activity-based costing system that he has repeatedly proposed. At Jim Brigham's request, Bob and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Activity Cost Drivers Expected Use of Cost Drivers Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Number of orders Number of moves Direct labor hours Number of setups Number of inspections Number of components Square feet occupied 500 5,400 65,000 1,200 4,300 40,000 52,000 Debbie Steiner, sales manager, has received an order for 12 luxury armoires from Thom's Interior Design. At Debbie's request, Bob prepares cost estimates for producing 12 armoires so Debbie can submit a contract price per armoire to Thom's. He accumulates the following data for the production of 12 armoires. 21 DM Cost ($) 5,300 DL Cost (8) 3,200 DL Hours 200 Number of Purchase Orders 3 Number of Materials Moves 32 Number of Machine Setups 4 Number of Inspections 20 Number of Components 640 Number of Square Feet Occupied 320 Q-5) What is the unit manufacturing cost per armoire under traditional costing? Q-6) What is the unit manufacturing cost per armoire under the proposed activity-based costing?