Woodland Industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $10 per hour and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 53,300 units for the year, which will require 219,000 direct labor hours: Activity Cost Driver Materials handling Cutting and lathe work Assembly and inspection Budgeted Costs for 2016 $ 37,230 2,546,970 3,810,600 Cost Driver Used as Allocation Base Cost Allocation Rate Number of parts used $ 0.17 per part Number of parts used 11.63 per part Direct labor hours 17 40 per hour The following production, costs, and activities occurred during the month of July: Direct Materials Number of Parts Direct Labor Units Produced Costs Used Hours 3,470 $112,600 378 13,200 Required: a. Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of July (using the activity-based costing approach). (Round "Cost per unit produced" to 2 decimal places.) Total manufacturing cost Cost per unit produced b. Assume instead that Woodland Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activity-based costing system previously described). Calculate the total manufacturing cost and the cost per unit of the windows produced during the month of July. (Hint: You will need to calculate the predetermined overhead application rate using the total budgeted overhead costs for 2016.) (Round "Cost per unit produced" to 2 decimal places.) Total manufacturing cost Cost per unit produced c. Which approach do you think provides better information for manufacturing managers? O Activity based costing Direct labor hours basis