Wacker Company has identified the following activity centers and cost drivers: Activity Center Purchasing Materials Handling. Setups

Wacker Company has identified the following activity centers and cost drivers:

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Activity Center Purchasing Materials Handling. Setups Cutting Assembly Painting Cost Driver Number of purchase orders Number of parts Number of setups Number of parts Direct labor hours Number of units painted Two customer orders came in for the month. The cost drivers appearing on each order are as follows: Number of purchase orders Number of parts... Number of setups Direct labor hours Number of units painted Order 1 Order 2 2 10 5 3 1 25 15 12 24 Required: Assuming the company traditionally allocated these costs using direct labor hours, how would activity-based costing, with the indicated cost drivers, improve the allocation of costs to products on the two customer orders?