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Green Furniture (GF) manufactures a variety of furniture for household use and just two items for office use: desks and cabinets. The production process for desks and cabinets is similar, although machines must be retooled for each product. Both materials and labour costs are directly traceable to individual products; however, overhead is a common cost and allocated using direct labour-hours as the allocation base. GFs accountant is considering the use of activity-based costing (ABC) and has suggested evaluating the system by applying it to the two office use products (desks and cabinets). The following data are available for a typical quarter.

Activity Cost Pool	Activity Base	Activity Rate			Activity Usage
					Desks			Cabinets
Parts receipts	Number of parts	$	2.00	per part		1,000	parts		650	parts
Machining	Machine-hours	$	10.00	per machine-hour		100	machine-hours		150	machine-hours
Assembly	Units produced	$	1.20	per unit		500	units		650	units
Quality control	Units tested	$	3.00	per unit		50	units		550	units
Direct materials					$	2,500		$	1,300
Direct labour					$	6,000		$	6,000

Each product consumed 300 direct labour-hours.

Required:

1. Determine the total manufacturing cost and cost per unit for each of the two product lines for the quarter, using activity-based costing to allocate overhead costs. (Round "Cost per unit" answers to 2 decimal places.)

2. Redo the above using direct labour-hours as the allocation base. (Round "Cost per unit" answers to 2 decimal places.)

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