After reviewing the new activity-based costing system that Nancy Chen has implemented at IVC's CenterPoint manufacturing facility, Tom Spencer, the production supervisor, believes that he can reduce production costs by reducing the time spent on machine setups. He has spent the last month working with employees in the plant to change over the machines more quickly with the same reliability He plans to produce 111,000 units of the Sport model and 45,500 units of the Pro model in the first quarter. He believes that with his more efficient setup routine, he can reduce the number of setup hours for both the Sport and the Pro products by 24 percent. Cost Drivers and Cost Driver Volumes-CenterPoint Manufacturing Facility Cost Driver Volume Activity Cost Driver Sport Assembly building Assembling Machine-hours 7.100 31,100 Setting up machines Setup hours Handling material Production runs Packaging building Inspecting and packing Direct labor-hours 64,400 35.000 89,400 Shipping Number of shipments 510 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility $1.511.000 52.422.ee $ 761, 1,001, eee $1,762,000 $3,273,000 $ 622,000 382,000 51.604,000 $3,426 Bee Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Assembling ( $30 per ) Setting up machine (e $900 per setup hour) Handling material ( $3,000 per run) Packaging building Inspecting and packing (@ss per direct labor-hour) Shipping ( $1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost $ $ 213.000 45,900 57,00 933,eee 459,000 153,000 125,00 322,000 146,520 $ 784,420 54,057,420 $1.963.040 $5,389,00 Required: a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the cost of asetup hour remains at $900 Model Total ABC Overhead Sport