by Casson Manfcuring to assess and make recommendations for the profitability of its Casson Manufacturing makes two types of Pistol Pete Bobbleheads. The Huge Supplemental Problem #1-Activity-based costing versus traditional costing Bobb Bobbl as a omament The Tiny Bobblehead is 15 centimeters tall and is sold for years, it only a jewehy aet tallnd is sold as a lawn requires faced intense have Bobblehead product ine. The Tiny Bobblehead is more difficult to manufacture and has apparel ng corpetition for both products from competing manufacturers and its sales of the Tiny Bobblehcads Manufcturiy dropped dramasically. Much of the competition is from Norman, Oklahoma-based Sooner-Goober Bobblehead hs theCason plant manager is convinced that this producer is intentionally selling the Tiny and machine setups because i is made out of pure platinum Casson Manufacturi below its manufacturing cost HuBobblehead Tiny Bobblehead 900,000 units Production Selling price Overhead per unit Direct materials cost per unit Direct labor cost per unit Direct labor hours Number of production runs Machine hours Receiving orders Engineering hours Materials moves 100,000 units $500 S3 S5 350,000 DLHs 190 runs $100 S150 150,000 DLHs 10 nus hin hours450 orders 15,000 machine hours 85,000 machine hours 40 orders 10,000 hours 40 moves 450 ordens 90,000 hours 60 moves Calculated using a plantwide rate based on direct labor hours. This is the current way of assigning the plant's overhead to its products Setup costs Machine costs Receiving costs Engineering costs Materials handling costs Total overhead costs S 250,000 $ 1,250,000 $ 2,000,000 $ 1,000,000 500000 5,000,000 Your recommendation is to consider (ABC). Setup costs be Machine hours. Recenincosts would be assigring overhead costs to each product ine using Activity-based Costing would be assigned using Number of production nuns. Machine costs would be assigned using Receiving costs would be assigned using Receiving orders. Engineering costs would be assigned hours. Materials handling costs would be assigned using Materials moves Problem 1 is continued on the next page