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Aplin Products manufactures fishing equipment for recreational uses. The North plant produces the company's two versions of a special reel used for river fishing. The

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Aplin Products manufactures fishing equipment for recreational uses. The North plant produces the company's two versions of a special reel used for river fishing. The two models are the N-008, a basic reel, and the N-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $280,000. During that time, the company produced 12,000 units of the N-008 and 2,000 units of the N-123. The direct costs of production were as follows Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $280,000. During that time, the company produced 12,000 units of the N-008 and 2,000 units of the N-123. The direct costs of production were as follows. Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Coat Driver Number of machine-hours umber of production runs Number of inspections Total ovechend Costa $120,000 70,000 90,000 $200,000 Activity Level N-000 N-123 5,000 3,000 10 10 20 40 Total 0.000 20 60 Required: 1. Identify the Activity Based Costing rate for each driver: 2. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead

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