Normal No Spad. Heading i Heading 2 OPEL ABC Emphati Title Subtitle Subtle Em.. Paragraph Styles AusScreen is a growing television marieturer in Australia The company has two main products. Model A (since 2015) and Model B (introduced in 2020). Unit selling prices for Model A and Model 13 are $900 and $1,140, respectively. The company's CEO, Ferdinand Henry, recommended that the company should focus its marketing resources on Model B while considering phasing out Model A. The company has used a traditional costing system as a basis for pricing decisions. The following cost information was used over the past year Direct materials per unit Direct labour hours per unit Machine hours per unit Units produced Model A Model B $208 $584 1.5 3.5 4 4.000 22.000 Hourly wage for direct labour is $12 per hour Manufacturing overhead costs were estimated at $4.800,000 and were allocated on the basis of machine hours. The financial controller, Daniel Nguyen, recommended that the company should employ activity-based costing analysis to obtain a better picture of the true manufacturing costs of the two models. He collected the folowng data: Activity Soldering Shipments Quality control Purchase orders Machining Machine set-ups Total overhead costs: Activity driver number of solder joints number of shipments number inspections number of orders machine hours number of set-ups Estimated costs $942,000 $860,000 $1,240,000 $950,400 $57,600 $750.000 $4 800.000 words 7/1 617 DE 23 ype here to search o 13C Sunny Subtitle Subtle Em Shipments ELVIS LAILLYRTIVA Soldering number of solder joints nurnber of shipments Quality control number inspections Purchase orders number of orders Machining machine hours Machine set-ups number of set-ups Total overhead costs: Munca Cost $942,000 $860,000 $1,240,000 $950,400 $57,600 $750,000 $4,800,000 Total Quantity of activity driver consumed Activity Model A Model B Soldering 1,185,000 385,000 1,570,000 number of solder joints Shipments 16,200 3.800 20,000 number of shipments Quality control 56,200 21,300 17 500 mimber inspections Purchase orders 80,100 109,980 190.080 number of orders Machining 176,000 16,000 192,000 machine hours Machine set-ups 16,000 14.000 30.000 mumber of set-ups Selling and administrative expenses are $265 per unit sold for Model A and $165 per unit sold for Model B. Required 4 of 8 Words: 7/1,617 Type here to search o Required a. Calculate the unit manufacturing costs of Model A and Model B under the traditional costing approach using machine hours for allocating manufacturing overheads.[10 marks) Click or tap here to enter text. b. Assuming use of activity-based costing, calculate the unit manufacturing costs of the two models given the activity analysis data above.[10 marks) Crick or tap here to enter text. c. Explain the differences in manufacturing cost per unit calculated in part a and part b.[5 marks) Click or tap here to enter text d. Calculate the operating profit per unit for Model A and Model B under the activity based costing approach and evaluate whether that the company should focus its marketing resources on Model B only and phase out Model A according to the CEO's suggestion.[5 marks] Click or tap here to enter text ge 4 of 8 Words 7/1,617 * Type here to search o