No.1 (15 Marks) Djokovic Electronics manufactures two touch-screen Laptop models: the Roddic, which sells for $1,650, and a new model, the Murray, which sells for $1,350. Few per unit cost data are given: Traditional Costing DM DL ($20 per hour) MOH ($38 per DLH) Roddic $800 $120 $228 Murray $520 $100 $190 In 2017, Djokovic manufactured 25,000 units of the Roddic and 10,000 units of the Murray. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the total direct labor hours (200,000) for the two models. Management is considering phasing out the Roddic model (comparatively low profit) and increasing the production of the Murray model Before finalizing its decision, management asks Djokovic's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2020. Activities Cost Est. Overhead Activity Drivers Cost ($) Level No. of orders 1,800,000 40,000 No. of setups 450,000 18,000 Activity Rate ?? ?? Purchasing Machine Setups Machining 3,600,000 120,000 ?? Machine hours No. of inspections 1,750,000 28,000 Quality Control ?? Cost Roddic Murray Total Activity Level 40,000 18,000 17,000 5,000 23,000 13,000 Drivers Purchasing Machine Setups Machining Quality Control 75,000 8,000 45,000 20,000 120,000 28,000 Required (15 Marks) a) Calculate the activity rates for all the activity cost pools. b) Assign the total 2017 manufacturing overhead costs to the two products using activity based costing (ABC) and determine the overhead cost per unit. c) What was the cost per unit and gross profit of each model using ABC? d) Explain the difference between the cost figures of Traditional and ABC system