1. ABC Co. manufactures and distributes 2 products, A and B. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount A B Production setups Number of setups $230,000 20 30 Material handling Number of parts 380,000 64 126 Packaging costs Number of units 580,000 50,000 30,000 $1,190,000 Use ABC and traditional overhead allocation methods to allocate overhead costs