Does ABC fit all organizations? Why or why not?Explain briefly.

Alphabet Ltd produces two wireless keyboard and mouse product models:Classic ModelandDeluxe Model. The production of the Deluxe model is more complicated than the Classic Model.

The current production and sales volume is2,000 unitsfor the Classic model and1,000 unitsfor the Deluxe model.

Currently, Alphabet Ltd allocates overhead usingmachine hoursonly. To examine how activity-based costing (ABC) would affect the overhead allocation, Alphabet Ltd collects the following information:

Activity	Activity Costs	Cost Drivers	Quantity of Cost Driversin Total	Quantity Used byClassic Model	Quantity Used by Deluxe Model
Machine Operations	$4,000	Number of Machine hours	4,000 hours	1 hourper unit	2 hoursper unit
Ordering Costs	$6,000	Number of Purchase orders	200 orders	50 ordersin total	150 orders in total
Product Designing	$2,000			30%	70%
Total	$12,000