Activity Level
Activity	Cost-Driver Base	Cost	Product A	Product B
Production setup	Number of setups	90,000	11	19
Materials handing & requisition	Number of parts per unit	15,000	6	18
Packaging & shipping	Number of units shipped	45,000	60,000	120,000
Total overhead		150,000

Paris, Inc, Produces two products, Product A and Product B. If currently allocates overhead costs using direct-labor hours, but the controller has recommended an activity-based costing (ABC) system using the following data:

B. Compute the amount of overhead to be allocated to each product under ABC.

C. Should the company follow controller's recommendation? Explain your answer.