P25-1A The Electronics Manufacturing Department of Digital Sound, Inc., in Dallas, Texas, assembles and tests electronic components used in digital music equipment. Consider the fol- lowing data regarding component Q42: Direct materials cost. Activity costs allocated Manufacturing product cost. $71.00 ? Activity Start station Dip insertion Manual insertion Wave solder Backload Test Defect analysis Total Standard time each component is in test activity Standard time for defect analysis and repair Allocation Base Number of raw component chasses Number of dip insertions Number of manual insertions Number of components soldered Number of backload insertions Cost Allocated to Each Unit 1 x $1.30 = $ 1.30 1 x $1.50 = 6 XS ? = 0.30 x $90.00 = 12.00 ? X $0.60 = 13 X $0.80 = ? 1.50 4.20 ? 0.10 XS ? = 5.00 $? Required 1. Fill in the blanks in both the opening schedule and the list of activities. 2. How is labor cost assigned to products under this product costing system? 3. Why might managers lavor this ABC system instead of the older system, which allocated all conversion costs on the basis of direct labor?