7 Help Save & Exit In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17.500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below Direct materials Direct labor Manufacturing overhead 01:41:15 Cost of goods sold Product A $436,300 $200,000 Product B $251,700 $104,000 Total $ 688,000 304,000 608,000 $1,600,000 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products). Other (organization-sustaining costs). Total manufacturing overhead cost. Activity Manufacturing Overhead Product A Product B Total $213,500 157,500 81,400 75 71,100 152,500 300 275 120,000 1 1 2 117,000 NA A NA $608,000 The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's adverting peras ug be directly traced to Product A and Product B. respectively The remainder of its selling and editve po organization-sustaining in nature The company's activity-based costing system would allocate how much manufacturing head to out A >