Activity Details:

• Activity 1:
  • Cost Driver: Number of Setups
  • Cost: $300,000
  • Setups: 150

• Activity 2:
  • Cost Driver: Inspection Hours
  • Cost: $200,000
  • Inspection Hours: 2,000

Requirements:

• Allocate overhead costs using activity-based costing (ABC).
• Calculate the total cost allocated to each activity.
• Present the overhead allocation in a detailed table format.
• Analyze the impact of overhead allocation on product pricing.