Must show work

There are two sets of questions below, one involving activity-based costing (ABC) analysis and one involving cost allocation/transfer pricing. Please answer both sets of questions. Also, please show your work. Overhead Allocation Star Light Corporation manufactures three bicycle models: a children's bike, an adult's bike, and a racing bike. Because of the different materials used in the parts for the three models, the production of each model of bike uses a unique combination of machine tools. However, once the component parts of a bike are produced, assembly time per unit required for each type of bike is identical. For this reason, historically Star Light had allocated all overhead costs entirely on the basis of machine hours. Its total overhead costs are $1,000,000. Recently, Star Light hired a consultant to replace its original overhead allocation system with an ABC-based system. The consultant estimated that 25% of Star Light's total overhead is generated by machine setup costs, 50% is generated by order processing costs, and 25% is generated by depreciation. The consultant also identified '"number of production runs" as the driver of machine setup overhead costs, "number of sales orders received" as the driver of order processing overhead costs, and machine hours" as the driver of depreciation overhead costs, with the volumes of the respective drivers as indicated in the following table. Activity Level Children Adult Racing 16 28 36 Activity Machine Setup Order Processing Depreciation Cost Driver Number of Production Runs Number of Sales Orders Received Machine Hours 400 600 10,000 16,000 24,000 600 Calculate the total overhead costs allocated to (just) Children's bikes under the consultant's ABC system? Show your work. (10 points) [use an extra sheet of paper if you need more space for your answer]