Exercise cost by activities The company SAVE THE PLANET has the following information of its operation during the past year, ESTIMATED INDIRECT FACTORY COSTS $2,345,000 ESTIMATED LABOR HOURS 435,000 The company manufactures 3 products for cleaning green areas, which you have the information below. Product Cost per Hour Manufacturing Hours Units 3 60 Raw Material Cost 1 4.25 125,000 2 8.75 80 80,000 3 12.00 50 175,000 ACTIVITIES Causal Pl 4.75 2 Groups Costs P2 P3 Manufacturing processes. 1,000,000 Hours Hand work 3 4.75 2 (units made) Product Testing 800,000 Units for testing 10% 10% 10% (one made) Maintenance 34.75 545,000 Manpower Hours 2 (units made) 1. Calculate the cost allocation rate 2. Calculate the ABC Costs 3. Contrast differences if any