I need help completing this homework assignment. I have also attached the "Small Company" example that is referred to in the instructions of the homework assignment.

8b Instructor Hand-in Problem Activity-Based Costing Solution Sheet Pennsylvania Manufacturing Company Activity-Based Costing Overhead Allocation and Product Cost Determination For the Year Ended XXXX Activity (Cost) Drivers Activity Center Handle and move materials Schedule production Clean and setup machines Run machines Totals Overhead (a) 100,000 30,000 200,000 500,000 830,000 Chalk (b) 250,000 20 250 6,000 Markers (c) 150,000 50 80 2,000 Fingerpaint (d) 100,000 100 100 500 8b Instructor Hand-in Problem Activity-Based Costing PROBLEM Required: Using the given information below, allocate the $830,000 of production overhead to the three products using activity-based costing (ABC) and determine the product cost using ABC. Use the worksheet at the first tab in this workbook. Type in your solution and save and submit this workbook. Document your computations in the worksheet in a manner that the reader can easily and clearly understand. (See the letters used in the columns in the Small Company example.) Show the cost per unit of the activity driver (to the nearest penny) as part of you solution worksheet. To check your work, make sure the total overhead allocated to the three products equals the $830,000 of overhead that you set out to allocate. Pennsylvania Manufacturing Company (PMC) produces three children's drawing/painting objects: chalk, markers, and finger paint. Traditionally, management has applied overhead to the products using direct labor hours as the allocation base. Under traditional costing, production information and product cost is: Chalk Markers Fingerpaint Total Units produced 6,000,000 450,000 200,000 Direct Labor Hours 5,000 2,700 3,300 11,000 Manufacturing Overhead per Direct Labor Hour ($830,000/11,000) Direct Materials Direct Labor Manufacturing Overhead Total Cost $ Direct Materials per unit Direct Labor per unit Manufacturing Overhead per unit Total Cost per unit $ 75.455 380,000 110,000 830,000 1,320,000 $ 115,000 $ 50,000 377,273 542,273 $ 175,000 $ 27,000 203,727 405,727 $ 90,000 $ 33,000 249,000 372,000 $ $ $ $ $ 0.02 0.01 0.06 0.09 0.39 0.06 0.45 0.90 0.45 0.17 1.25 1.86 $ $ $ $ $ $ $ $ For application of activity-based costing (ABC), management has broken the overhead down into four activity cost pools and identified activity (cost) drivers for each pool as follows: Handle and move materials Schedule production Clean and setup machines Run machines Totals Activity (Cost) Driver Pounds moved Number of production orders Number of setups Machine hours Overhead $ 100,000 30,000 200,000 500,000 $ 830,000 Chalk 250,000 20 250 6,000 Activity (Cost) Driver Description Pounds moved Number of production orders Number of setups Machine hours Markers 150,000 50 80 2,000 Fingerpaint 100,000 100 100 500 To save you busy work, the overhead and activity drivers have been placed on the solution sheet at the first tab of this workbook. See the required at the top of the page. ABC Cost Calculation Example: Small Company has been using a traditional cost accounting system and provided the following information for the most recent quarter. ***Directly traced to the product ***Allocated to the product based on direct labor hours: $900,000 overhead / 20,000 DHLS = $45 overhead per direct labor hour Product A $45 per DLH x 1 DHLs per unit = $45 overhead per unit Product B $45 per DLH x 0.80 DLHs per unit = $36 per unit Applying ABC to Small Company: A methodical step-by-step example of ABC cost allocation will help to make the concept concrete. In textbook problems, Steps 1 - 6 below are generally given, however, in the \"real world\" completing these steps is problematic. Step 1: Small Company identified two cost objects of interest to management: Product A and Product B Step 2: Small Company identified five activities associated with the two cost objects: Activities should be named in a certain way, as will be explained later in this lesson. However, many organizations do not use the proper convention, so less proper labeling of activities that you are likely to see is presented. Machine setups (Should say \"Setup machines\") Quality inspections (Should say \"Inspect quality\") Production orders (Should say \"Prepare production orders\") Machine-hours worked (Should say \"Operated machines\") Materials receipts (Should say \"Received materials\") Step 3 and 4: Small Company identified the resources consumed by the activities (Step 3) and determined how much of each resource should be applied to each activity (Step 4). The resulting activity cost pools were: Step 5: Small Company determined the following allocation bases (later called activity drivers) to be used to assign (allocated) overhead: Step 6: Small Company measured the quantity of each of the allocation based/activity drivers during the period: Step 7: Small Company used the above data to develop separate overhead rates for each of the activities (i.e., a cost per setup, cost per inspection, etc): Step 8: Small Company used the data to assign overhead costs to the two products. Allocating Overhead to Products Step 9: Small Company computed product costs under the ABC sytem. Step 10: Small Company compared ABC and Traditional Product Costs