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 117.000 units of the Spon model and 48,500 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 18 percent Cost Drivers and Cost Driver Volumes-CenterPoint Manufacturing Facility Cost Driver Volume Activity Cost Driver Sport Pro Assembly building Assembling Machine-hours 2,780 31,728 39,400 Setting up machines Setup hours Handling material Production runs Packaging building Inspecting and packing Direct labor-hours 66,880 25, 2ee 93, Shipping Number of shipments Total 57 25 570 57 627 52 234 351 Third Quarter Unit Cost Report. Activity-Based Costing-CenterPoint Manufacturing Facility Sport Pro Direct material $1,517, cee 52,434,0 Direct labor Assembly $ 762,00 5634, Packaging 1, 107.000 394, eee Total direct labor $1,224.ee 51,228.00 Direct costs $3.291,00 $3,462,00 Overhead Assembly building Assembling ( 530 per M) $ 231,00 5951, eee Setting up Machine (@ $900 per setup-hour) 51,300 513eee Handling material ($3,000 per mon) 75, Bee 171, nee Packaging building Inspecting and packing ( 55 per direct labor-hour 334,000 231.ee Shipping ($1,320 per shipment) 154,440 308, Total ABC Overhead $945,74e $2,074,88 Total ABC cost 54,136,740 55,536,880 Number of units 117,00 48,5ee Unit cost 35.36 5 114.16 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