PROBLEM $19\mathrm{.}2$A Activity$-$Based Management and Target Costing LO$19-2,\backslash (\backslash$square $\backslash )$ LO$19-3,\backslash (\backslash$square $\backslash )$ LO$19-4,\backslash (\backslash$square $\backslash )$ LO$19-5$ Kallapur Company manufactures two products: KAP$1,$ which sells for $\backslash (\backslash$$ $120\backslash ),$ and QUIN, which sells for $\backslash (\backslash$$ $220\backslash ).$ Estimated cost and production data for the current year are as follows: Instructions a$.$ Calculate the target cost for both KAP$1$ and QUIN. c$.$ Recalculate the total manufacturing cost per unit if fixed overhead costs are assigned to products on the basis of direct labor hours. Which of the products is earning the desired return? d$.$ On the basis of the confusing results of parts $\backslash (\backslash$mathbf$\{$b$\}\backslash )$ and $\backslash (\backslash$mathbf$\{$c$\}\backslash ),$ Kallapur's manager decides to perform an activity analysis of fixed overhead. The results of the analysis are as follows: Estimate the total manufacturing cost per unit of each product if activity$-$based costing is used for assigning fixed overhead costs. Under this method, which product is earning the desired return? e$.$ What proportion of fixed overhead is value$-$added? In attempting to reach the target cost for QUIN, which activity would you look to improving first, and why? the manufacturing costs of both products? Which of the products will earn the desired return? Calculate the manufacturing costs for each product if the machine is purchased. Should QUIN be redesigned or should the machine be purchased? Why?