QUESTION 8 (Not a repeat question ) Guess Klein produces designer clothing such as Tishirts and jeans from fabric purchased from several nearby factories The company's factory has two departments, Cutting and Sewing, The Cutting department, which cuts the garments from patterns, is a machine-intensive operation, It takes three times longer to out and sew jeans compared to T-shirts. The Sewing department stitches the out fabric, sews Zippers and buttons and does quality checking, While stitching is highly automated, sewing Zippers and buttons and performing quality checks is manual, The company has decrded to redo their accounting system and move to an activity based cost system. Table 1 shows the live activity cost pools which Include all at the company's direct labor and manutactunng overhead costs, It also shows the cost drivers for each pool Table 2 shows the cost drivers consumed by the two products, Table 3 shows budgeted product data for Jeans and T-shirts, Table 1: Guess Klein Activity Cost Pools I Activity Co at | Cost Driver Maintain Equipment $56,000 Machine hours m 276.000 Sew 212 000 Number of Sides Button/Zipper 95,500 Labor hours Check/Move Goods 45,500 Number of moves Total $685,000 Table 2: Guess Klein Activity Cost Drivers Total Machine Hours Number of cuts per garment Number of sides per gament Total Labor Hours Total Number of Moves Table 3: Budgeted Product Data for Guess Klein Garments Product Jeans T