Blink Inc. manufactures Android phones and tablets. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended using an activity-based costing system based on the following data:

			Activity	Level
Activity	Cost Driver	Cost	Android phones	Tablets
Production setup	Setups	$100,000	70	30
Purchasing	Orders	$ 80,000	300	500
Maintenance	Machine hours	$120,000	7,000	5,000
Total Manufacturing Overhead		$300,000

a. Compute the amount of total overhead allocated to each of the products under activity-based costing.

b. Compute the amount of total overhead allocated to each product using labor-hours as the allocation base. Assume labor-hours required to assemble each unit are 0.75 per Android phone and 1.0 per tablet, and that 120,000 Android phones and 60,000 tablets were produced.

c. Should Blink follow the controllers recommendations?