$10$ points

ABC Inc. makes two products, A and B$.$ The company is currently assigning the $$1,200,000$ of overhead costs to its products based on machine hours. Of the overhead, $$480,000$ is utitities related and the remainder is related to labor hours. The following information is also available:

$\backslash$table$[[,\backslash$table$[[$Product A$]],$Product B$],[$Number produced,$750,000,250,000],[$Machine hours,$60,000,30,000],[$Direct labor hours,$25,000,50,000]]$

a$.$ Determine the total overhead cost assigned to standard items and custom items using the current system.

b$.$ Determine the total overhead cost assigned to standard items and custom items if more appropriate cost drivers were used.