The Pallon Company manufactures a variety of handerated bed frames. The company's manufacturing activitiesor the current Sear follow:Manufacturing Activity Estimated Cost Cost Driver Used as Estimated VolumeAllocation Basefor Cost DriverMaterial handling 400,000Number of parts800,000 partsCutting1,200,000Machine hours40,000 hoursAssembly3.000,000Direct labour hours150,000 hoursWood staining1.320,000Number of frames stained60,000 framesWo styles of bed frames were produced in July: a wood frame needing fewer direct labour hours and a metal frame that required to staining activities. Direct labour is paid at $25 per bour. Quantities, direct material costs, and other data follow:UnitsDirectMachine NumberDirectProduced MaterialHours of Parts Labour HowWood framesMetal frames5.000$600,0005.000100.0006.0001,000200.0005003.000equiredA. Compute the ABC cost allocation rates and then caleulate total manufacturing.costs and unit costs of the wood and metalframes.B. Suppose nonmanufacturing activities, such as product design, were analyzed and allocated to the wood frame at 610 each and to the metal frame at $15 each. Moreover, similar analyses were conducted of other nonmanufacturing activities, such as distribution, marketing, and custorner service. The support costs allocated were $50 per wood frame and S8o per metal frame. Compute the product cost per unit, including the nonmanufacturing cost

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Given data Material handling cost 400000 Number of parts 800000 Cutting cost 1200000 Machine hours 4... View the full answer