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 120,000 units of the Sport model and 50,000 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 15 percent Cost Drivers and Cost Driver Volumes-CenterPoint Manufacturing Facility Cost Driver Volume Activity Cost Driver Total Assembly building Assembling Machine-hours 40,00 Setting up machines Setup hours Handling material Production runs Packaging building Inspecting and packing Direct labor-hours 94,800 Shipping Number of shipments Sport Pro 8.000 60 28 32.000 600 60 660 88 65,000 12e 26,800 240 360 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Sport Pro Direct material $1.520.000 $2.400.000 Direct labor Assembly 5 770,000 $540,000 Packaging 1.010,000 400,000 Total direct labor 31.780.000 51.040.000 Direct costs 33300.000 $9.430,000 Overhead Assembly building D $1.520,000 $2,440,000 $ 270,000 1,010,000 $1,780,000 $3,300,000 $ 640, een 400,000 $1,040,000 53,480,000 Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Assembling (@$30 per MH) Setting up machine (@ $900 per setup hour) Handling material (@ $3,000 per run) Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@ $1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost $ 240,000 54,000 84,000 $ 960,000 540,000 180,000 340,000 158,400 5876,400 $4,176,400 120,000 $ 34.80 134,000 316,800 $2.130,800 $5,610,800 50,000 $ 112.22 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 a setup hour remains at $900. Model Total ABC Overhead Sport Pro