Calculate the Activity Based Costing Allocations for each product line and calculate your gross margins based on the ABC allocations. In addition to the calculations, your paper should include a discussion of what other possible drivers may be useful if you were able to get the appropriate information.

  
 
 

Exhibit 1 Monthly Income Statement for January Sales Product Sales Volume Price/unit Revenue % of sales Pitons 4,200 $ 10.50 $44,100.00 Hammers 400 $ 61.00 $24,400.00 Total Rock nut sets Cost of Goods Sold 2300 $ 24.50 $56,350.00 $124,850.00 100% Materials Product Pitons Hammers Rock nut sets Total DM Production volume Cost/unit Total DM 4200 $ 1.45 $6,090.00 400 $ 10.44 2300 $ 6.01 $4.176.00 $13,823.00 $24,089.00 19.3% $47,916.67 38.4% Direct Labor Manufacturing Overhead Light, Heat, and Power $2,855.00 Supplies $725.00 Depreciation $1,612.92 Manufacturing occupancy $2,200.00 $5.270.83 Supervision Total manufacturing overhead Cost of Goods Sold Gross Margin S, G, and A Expense Office salaries General administration Administrative occupancy Shipping and delivery Operating Income for the Month $ 10,541.67 $ 600.00 $ 550.00 $ 745.00 $12,663.75 $84,669.42 67.8% $40,180.58 32.2% $12,436.67 10% $27.743-91 22%