C&D Corporation produces high quality stuffed cats and dogs as toys for children and adults. Labor hours required to assemble each unit are 1 hour per cat and 2 hours for each dog. 160,000 cats and 240,000 dogs are produced. Overhead costs are currently allocated using direct labor hours as the allocation basis, but the controller has recommend using an activity- based costing system based on the following data: Activity Activity Activity Cost Driver Cost Level Level Cats Dogs 60 Production Setups $200,000 40 setup Material Parts $60,000 48 72 handling Packaging Units $120,000 160,000 240,000 & shipping shipped Total $380,000 overhead A. Prepare a schedule to compute the amount of total overhead allocated to each of the two products under activity-based costing. B. Prepare a schedule to compute the amount of total overhead allocated to each of the two products using direct labor hours as the allocation base. Overhead Allocated Activity Cost Driver R ate Cats Dogs Total Setups Part Production setup Material handling Packaging & shipping Totals Units shipped Overhead Allocated Cats Dogs Total Units produced Labor hours per unit Total labor hours Overhead rate per hour Overhead allocation