Cost Drivers and Cost Driver VolumesCenterPoint Manufacturing Facility

Activity Cost Driver Cost Driver Volume Sport Pro Total Assembly building Assembling Machine-hours 6,900 30,900 37,800 Setting up machines Setup hours 49 490 539 Handling material Production runs 17 49 66 Packaging building Inspecting and packing Direct labor-hours 63,600 24,600 88,200 Shipping Number of shipments 109 218 327 Third Quarter Unit Cost Report, Activity-Based CostingCenterPoint Manufacturing Facility

Sport Pro Direct material $ 1,509,000 $ 2,418,000 Direct labor Assembly $ 759,000 $ 618,000 Packaging 999,000 378,000 Total direct labor $ 1,758,000 $ 996,000 Direct costs $ 3,267,000 $ 3,414,000 Overhead Assembly building Assembling (@ $30 per MH) $ 207,000 $ 927,000 Setting up machines (@ $900 per setup hour) 44,100 441,000 Handling material (@ $3,000 per run) 51,000 147,000 Packaging building Inspecting and packing (@ $5 per direct labor-hour) 318,000 123,000 Shipping (@ $1,320 per shipment) 143,880 287,760 Total ABC overhead $ 763,980 $ 1,925,760 Total ABC cost $ 4,030,980 $ 5,339,760 Number of units 109,000 44,500 Unit cost $ 36.98 $ 119.99 Required: Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the cost of a setup hour remains at $900.