Review View. Help Factset Acrobat Week 9 Revision question: Activity based costing Aerodec Inc. manufactures and sells two types of wooden deck chairs: Deluxe and Tourist. Annual sales in units, direct labour hours per unit, and total direct labour hours per year are as follows: TOTAL HOURS Deluxe deck chair: 2,000 units x 5 DLHS per unit 10.000 Tourist deck chair: 10,000 units x 4 DLHs per unit 40.000 TOTAL DIRECT LABOUR HOURS 50.000 Costs for materials and labour for one unit of each product are given below Deluxe Tourist Direct materials $25 517 Direct labour (at $12 per hour) $60 Manufacturing overhead costs total $800,000 each year. The breakdown of these costs among the company's six activity cost pools is given below. Activity Category Cost Driver Estimated Consumption Consumption overhead cost of cost driver of cost driver (Deluxe) (Tourist) Labour related Direct labour 580,0QQ 10.000 40.000 hours Machine setups Number of $150.000 3,000 2 000 setups Parts Number of $160 000 50 30 administration parts Production orders Number of 570 000 100 3010 orders Material receipts Number of 590 DOO 150 500 receipts General factory Machine $250.000 12.000 28.000 hours Required (a) Using a single plantwide cost driver rate based on direct labour hours, determine the cost of producing a unit of the deluxe and tourist deck chairs (b) Determine the costs per deck chair using activity based costing (c) Explain and comment on the differences of costs between the plantwide rate and