Oakenfeld Company manufactures a number of specialized machine parts. PartBunkka-22 uses $35 of direct materials and $15 of direct labor per unit.Oakenfeld??s estimated manufacturing overhead is as follows:

Overhead is applied based on direct labor costs, which were estimated at $200,000.Oakenfeld is considering adopting activity-based costing. The cost drivers are estimated at:

Instructions(a) Compute the cost of 1,000 units of Bunkka-22 using the current traditional costing system.(b) Compute the cost of 1,000 units of Bunkka-22 using the proposed activity-based costing system.Assume the 1,000 units use 2,500 pounds of materials, 500 machine hours, and 1,000 direct laborhours.

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Materials handling $100,000 200,000 150,000 Machining Factory supervision Total $450,000