Calculate the cost allocation rates, total manufacturing costs and unit costs of the wood and metal window frames using Activity Based Costing approach.

The company management recently had a meeting to discuss investment in different industry or sector. David Smith, a management staff drew their attention to prospect of investment in schools . However, Smith’s concern was in relation to his limited knowledge about the activities that may contribute to costs and how these can be controlled or reduced. Other members of management raised other investment options, but they settled on the option of looking into establishing preschool. There were also other concerns raised during the meeting, but management reached a consensus on the need to commence looking
(i) Calculate the cost allocation rates, total manufacturing costs and unit costs of the wood and metal window frames using Activity Based Costing approach.
(ii) Assume that nonmanufacturing activities, such as product design, were analysed and
allocated to the wood window frame at £10 each and the metal window frame at £15 each. In addition, similar analyses were conducted of other nonmanufacturing activities such as
distribution, marketing and customer service. The support costs allocated were £50 per wood window frame and £80 per metal window frame. calculate the product cost per unit by including the nonmanufacturing costs.
(iii) With reference to examples from either the case study or from organisations beyond the case study, critically evaluate at least five roles played by cost drivers in organisations.