QUESTION NUMBER FOUR (18 marks 20 minutes) Surface Ptech Ltd. manufactures two models of tablets. The Quantum 10 has features designed for personal and family use. The Surface is designed for business and professional use. Data regarding the two product lines are as follows: Quantum 10 Expected production 50,000 Direct materials cost $12.14 Direct labour cost $12.86 The Indirect manufacturing costs has been estimated at a total of $1,629,000 and the company is considering implementing an activity-based costing system in its plant and has identified four primary activities. Data on these activities are as follows: Budgeted 100,000 $28.64 $12.86 ACTIVITY Quantum 10 Equipment setup 50 setups Machine processing 30,000 machine hours Quality control 5,000 inspection hrs Packaging and shipping 125 shipments Surface 30 setups 220,000 machine hours 10,000 inspection hours Cost $64,000 $855,000 $615,000 75 shipments $100,000 The company currently prices its products by adding a 45% markup to the total manufacturing cost. REQUIRED Compute the per-unit cost and selling price of both models of tablets using an ABC Costing system