Question 5 (9 points) Please use the following information for the next 2 questions: Scranton Corporation makes two types of replacement fittings for farming equipment- discs and blades. Data regarding the two products follow: Discs Blades Direct Labour-Hours per Unit 0.20 0.10 Annual Production 40,000 units 60,000 units Additional information about the company follows: a. Discs require $8.90 in direct materials per unit, and blade require $6.90. b. The direct labour wage rate is $40 per hour. C. Discs are more complex to manufacture than blades, and they require special equipment. d. The ABC system has the following activity cost pools: Activity Activity Activity Disas Blades Total 80 40 120 Activity Cost Activity Estimated Pool Measure Overhead dose Machine Number of $28.800 Setups Setups Special Machine- $232.000 Processing hours General Direct Labour- $588,000 4.000 0 4,000 710001 14,000 21 000 Discs require $8.90 in direct materials per unit, and blade tequire $6.90. b. The direct labour wage rate is $40 per hour. Discs are more complex to manufacture than blades, and they require special equipment. d. The ABC system has the following activity cost pools: C. Activity Activity Activity Discs Blades Tota/ 80 40 120 Activity Cost Activity Estimated Pool Measure Overhead Cost Machine Number of $28,800 Setups Setups Special Machine- $232,000 Processing hours General Direct Labour- $588,000 Factory hours 4,000 4,000 7.000 14,000 21,000 Required: A) Compute the activity rate for each activity cost pool. Round to nearest dollar. Paragraph B I A go x X ... Question 6 (16 points) B) Determine the unit cost of each product according to the ABC system, including direct materials and direct labour. (Round your answers to 2 decimal places.) Paragraph B I U A E TIIL olo + v