The activity-based cost (ABC costing) defines 5 activity levels that we will identify with letters for the purposes of this exercise: U : level-unit (Unit-level) L: level -lote (Batch-level) P: level-product Product-level) C : level-customer ( Customer-level) S: entity support (Organization-sustaining) The company Todo Inc., which manufactures several products, performs the following activities. Classify each activity within one of the levels. Place the corresponding letter in the box. level Exercise Production line employees assemble the products. Employees of the Human Resources department train line employees. Three employees are responsible for the inventory of the parts used to manufacture the products. Several engineers design new products. A purchasing clerk makes new orders for materials to manufacture the ordered product. A warehouse clerk issues orders for materials for production. Two mechanical engineers perform periodic preventive maintenance on the equipment used for manufacturing. The Marketing department prepares the quarterly catalog of products for sale. LMN Excercise, Inc. manufactures portable infrared ray saunas. He markets and sells them to gyms and spas who in turn sell them to their individual clients. The company has a generic model but also manufactures models with customer specifications, especially for gyms. The cost activities and their respective rates in the costing system by company activity are the following: Cost activity Activity rate Design with customer specifications | $ 287 for each design Order Processing $ 211 per order Customer service $ 470 per customer Direct support labor $ 19.80 per hour of labor Management asked you for a profitability analysis of customer Z. You have been provided with the following information regarding the orders of this customer in the past 12 months. Direct labor rate: $ 21 /hour Generic model Model with specifications 10 two one Amount of saunas Number of orders Number of designs with specifications Direct labor for each sauna Sale price per sauna Materials cost per sauna 31 hours $ 1.815 $ 508 35 hours $ 2.530 $ 634 Required: Calculate the margin or profitability of the customer Z