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Exercise 9-33 (Algo) Activity-Based Costing (LO 9-4, 5) After reviewing the new activity-based costing system that Nancy Chen has implemented of IVCs Centerpoint manufacturing facily,

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Exercise 9-33 (Algo) Activity-Based Costing (LO 9-4, 5) After reviewing the new activity-based costing system that Nancy Chen has implemented of IVCs Centerpoint manufacturing facily, Tom Spencer, the production supervisor, belleves that he can reduce production costs by teducing the time spent on machine setups. He has spent the last month working with erpployees in the plant to change over the machines more quickly with the same reliability. He pians to produce 104,000 units of the Socrt model and 42,000 units of the Pro modef in the first quarter He believes that with his more efficient setup routine, he can redfuce the number of setup hours for both the Sport and the Pro products by one-third. Cost Drivers and Cost Oriver Volumes-CenterPoint Manufactuting Facilly Third Quarter Unit Cost Report, Actwity-Based Costing-CenterPoint Manufacturing Facility a. 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 cemains at $900

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