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Healthy Hound, Inc., makes two lines of dog food: (1) Basic Chunks, and (2) Custom Cuts. Information concerning each product line is provided below. The

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Healthy Hound, Inc., makes two lines of dog food: (1) Basic Chunks, and (2) Custom Cuts. Information concerning each product line is provided below. The company currently allocates manufacturing overhead to each product line on the basis of direct labor hours. Budgeted manufacturing overhead is 34,600C, whereas budgeted direct labor hours amount to 2,900 . Healthy Hound recently hired a consultant to examine its cost accounting system. The consultant recommends that the company adopt activity-based costing to allocate manufacturing overhead. She proposes that the following cost pools and activity bases be used: The amount of activity corresponding to each product line is as follows: a. Compute the allocated manufacturing overhead to each product line using direct labor hours as a single activity base. b. Compute the allocated manufacturing overhead to each product line using the activity-based costing approach recommended by the consultant. c. Compute the totai manufacturing costs assigned to each product line when activity-based costing is used to allocate manufacturing overhead

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