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Implement an activity-based costing system for a manufacturing company producing two products: Product A and Product B. The following information is available: Activity 1 (Setup):

Implement an activity-based costing system for a manufacturing company producing two products: Product A and Product B. The following information is available:


    • Activity 1 (Setup): $200,000
    • Activity 2 (Machine Hours): $300,000
    • Activity 3 (Quality Control Inspections): $150,000
    • Product A requires 100 setups and 500 machine hours.
    • Product B requires 50 setups and 800 machine hours. Allocate the overhead costs to each product using the ABC system. Present your calculations in a tabular format, and discuss the implications for product costing decisions.

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