WinCo Producers manufactures a product that requires 6 hours of machine time. Machine hours are a scarce resource. The company has 100 machines that work 8 hours per day. The factory operates five days per week and 50 weeks annually. Each unit of this product is sold for $560 and the product uses direct material costing $80 per unit. The total factory operating costs includes direct labour costs and production overheads. The average labour hour rate is $15 per hour and the company employs 150 employees who all work 8 hours per day, The company tilizes an activity-based costing system in its production process. The budgeted overheads are as follow: Engineering costs Set-up equipment Quality control $7.000.000 $2,500,000 $4,000,000 The budgeted activity levels and the drivers were also analyzed below: Engineering hours Material moves Number of inspections 437.500 250.000 800.000 The actual activities for the same period ore noted below based on data provided by the production departments Engineering hours Material moves Number of inspections 437,500 250.000 800.000 The actual activities for the same period are noted below based on data provided by the production department: Engineering costs Material moves 310,000 300,000 Number of Inspections 950.000 Required: (a) Calculate the return per factory hour and cost per factory hour, (12 marks) (b) Calculate the TPAR. (1 mark) (c) What decision should be made by management (2 marks) (d) Outline two limitations of activity-based costing. (2 marks)