1. The Craig Company uses normal costing and Activity-Based Costing to budget the following overhead activities and calculate costs and applied overhead. 20 points ACTIVITY Budgeted Costs Driver Budgeted Use of Driver Setup $500,000 # of setups 500 setups Inspection 48,000 Inspection Hrs 4,000 inspection hours Grinding 120,000 Machine Hours 120,000 machine hours Receiving 50,000 # of parts 12,500 parts The company produces two different products called Bob and Carol. The following information was collected during the month of August. Required: Using Activity Based Costing, assign the appropriate overhead cost for August to the two products. (SHOW YOUR WORK). CAROL BOB 150 500 Number of units completed Number of set-ups for the month Number of machine hours for month Inspection hours for month Number of parts used in the month 1,000 300 310 3,000 900 1,500 CAROL Set-up costs 12,000 parts The company produces two different products called Bob and Carol. The following information was collected during the month of August. Required: Using Activity Based Costing, assign the appropriate overhead cost for August to the two products. (SHOW YOUR WORK). CAROL 500 Number of units completed Number of set-ups for the month Number of machine hours for month Inspection hours for month Number of parts used in the month 150 5 1,000 300 310 3,000 900 1,500 CAROL Set-up costs Inspection costs Grinding costs Receiving costs