#4 Activity-Based Costing Production Inc. uses activity based costing. The following estimated activity costs are identified in the table below. In addition, they have two product lines, A100 and B100. Activity Cost Cost Driver A100 B100 Cost allocation base Setup 85,600 # of setups 1,600 1,750 | $ 16,000 Handling 136,500 # of parts L,480 360 | $ 5,000 Assembly 126,000 Direct Labor Hours 800 365 5,000 Total 348,100 Summary of prime costs: A100 B100 Direct material: $ 16,000 $ 9,500 Direct labor 13,400 | $ 12,700 a) Calculate the unit cost for the two products, A100 and B100. Activity Cost Cost allocation base Activity Rate Setu Handling Assembly Total A100 B100 Cost Type Activity amount Cost Amount Activity amount Cost Amount Direct materials Direct labor Setup Handling Assembly Total c) Which product line costs the least to manufacture? d) In your own words, describe many believe that activity based costing is superior to all other costing methods. What are the benefits to management decision making in using an activity based costing approach