Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to...

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Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool Materials handling Overhead Costs $50,000 Activity-cost driver 90,000 orders 15,000 maintenance hours 45,800 setups Machine maintenance $300,000 Setups $238,160 Inspections $144,840 21,300 inspections Total support costs $733,000 Production Estimates Production units: Regular = 9,000,000 units OA. $5.20 per setup OB. $6.80 per setup OC. $4.26 per setup OD. $20.00 per setup lotal support costs $133,000 Production Estimates Production units: Regular 9,000,000 units Jumbo Machine-hours = 18,000,000 units = 500,000 mh Labor-hours = 1,000,000 dih Expected direct costs amounts to $958,000 for the period. Support cost requirements of both products are substantially different from one another. Canton uses an ABC costing system. The setups activity-cost driver rate is OA. $5.20 per setup OB. $6.80 per setup OC. $4.26 per setup COD. $20.00 per setup Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool Materials handling Overhead Costs $50,000 Activity-cost driver 90,000 orders 15,000 maintenance hours 45,800 setups Machine maintenance $300,000 Setups $238,160 Inspections $144,840 21,300 inspections Total support costs $733,000 Production Estimates Production units: Regular = 9,000,000 units OA. $5.20 per setup OB. $6.80 per setup OC. $4.26 per setup OD. $20.00 per setup lotal support costs $133,000 Production Estimates Production units: Regular 9,000,000 units Jumbo Machine-hours = 18,000,000 units = 500,000 mh Labor-hours = 1,000,000 dih Expected direct costs amounts to $958,000 for the period. Support cost requirements of both products are substantially different from one another. Canton uses an ABC costing system. The setups activity-cost driver rate is OA. $5.20 per setup OB. $6.80 per setup OC. $4.26 per setup COD. $20.00 per setup