:100 MINOTES DURATION Activity-Based Costing (30%) ADA Pharmaceutical Company produces three drugs: Diomycin, Homycin, and Addolin belonging to the analgesic family of medication. Ernest Alistair, the president of ADA Company, has just read activity-based costing in a trade journal. With some curiosity and interest, he asked his financial controller to examine differences in product costs between the firm's current based costing systems costing and activity- ADA has the following budget information for the year: Costs of direct materials Costs of direct labor Number of capsules cin $ 205,000 $ 250,000 1,000,000 Homycin $265,000 $234,000 500,000 Addolin $258,000 $ 263,000 300,000 ADA has identified the following activities as cost drivers and has allocated them to total overhead cost of $ 200,000 as follows: Cost driver Setup hours Workers Direct labor hours Inspection hours Customers served Budgeted overhead cost Activity Machine setup Plant management Supervision of labor Quality inspection Expediting orders Total overhead $ 16,000 36,000 46,000 50,400 51,600 200,000 The financial controller gathered the following information about the cost driver volume for each product: Addolin Cost driver Setup hours Workers Direct labor hours Inspection hours Customers served Diomycin 200 200 200 150 45 Homycin 600 400 300 200 100 800 600 650 700 500 Calculate cost per capsule of each product using activity-based costing system (round to 2 decimal places)