Exhibit 3-1 Hydrate Inc. makes two types of sports drinks and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench. Additional data is as follows: Cost Driver and Estimated Estimated Level Overhead Use of Cost Use of Cost Driver Driver Cost Pool of Activity Cost by Sports Light by Thirst Quench 65 setups 35 setups 95 orders 45 orders Equipment Setup 100 setups $20,000 Materials 140 orders $21,000 Ordering Quality Control 200 inspections $22,000 Mixing 9,000 machine $18,000 hours 150 inspections 50 inspections 5.000 machine 946 machine hours hours Refer to Exhibit 3-1. What is the total overhead cost for Sports Light using ABC? None of the answer choices is correct. S53,750 $76,271 $23,945 $57,564 Exhibit 3-1 Hydrate Inc. makes two types of sports drinks and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench. Additional data is as follows: Cost Driver and Estimated Use of Cost Use of Cost Estimated Level Overhead Driver Driver Cost Pool of Activity Cost by Sports Light by Thirst Quench 35 setups 65 setups Equipment Setup 100 setups $20,000 Materials 140 orders $21,000 Ordering Quality Control 200 inspections $22,000 9,000 machine Mixing S18,000 hours 95 orders 45 orders 150 inspections 50 inspections 5,000 machine 946 machine hours hours Refer to Exhibit 3-1. Using ABC, what is the cost per order for the Materials Ordering activity? $200 SITO $462 $150 None of the answer choices is correct. Metro Inc. has two production departments (Lamination and Molding) and three service departments (Human Resources, Technology Support, and Purchasing). Service department costs are allocated to production departments using the direct method. The $200,000 costs of Human Resources are allocated based on the number of employees in each production department. The $400,000 costs of Technology Support are allocated based on hours of technology support used by each production department. The $120,000 of Purchasing is allocated on the pounds of raw materials purchased for each production department. Information for each production department is as follows: Number or Technology Pounds of Employees Support Hours Raw Materials Lamination 40 600 30,000 Molding 120 2.400 70.000 Total 160 3.000 100,000 Refer to Exhibit 3-3. Using the direct method of allocating service department costs to production departments, how much of the Human Resource service department costs should be allocated to the Molding Department? None of the answer choices is correct. $160,000 S50,000 $70,000