Commonwealth Devices makes three wearable fitness devices at its Lake Plant: CFit$-1,$ CFit$-2,$ and CFit$-$Xtra. The company has for

many years allocated overhead to products using machine$-$hours. Last year, the Lake Plant produced and shipped $8,220$ units of CFit$-1,$

$14,660$ units of CFit$-2,$ and $8,220$ units of CFit$-$Xtra. The plant recorded the following revenues and costs:

The Lake Plant has put together an employee team to recommend a possible activity$-$based cost system, including cost allocation

bases. The employee team recommends the following:

The employee team further recommends that administration costs not be allocated to products.

Required:

a$.$ Using machine$-$hours to allocate overhead, complete the income statement for the Lake Plant. Do not allocate administrative costs

to products.

b$-1.$ Compute the cost driver rates.

b$-2.$ Complete the income statement using the activity$-$based costing method suggested by the employee team.