Optimed Corp. manufactures two types of medical diagnostic devices, A and B. Overhead costs are currently allocated using direct labor hours, but the controller has recommended using an activity-based costing system using the following data:

			Activity level
Activity	Cost driver	Cost	A	B	Total
Production setup	# of setups	$120,000	15 setups	10 setups	25 setups
Material handling	# of parts	$ 50,000	25 parts	15 parts	40 parts
Packaging/shipping	# of units	$ 10,000	4,000 units	6,000 units	10,000 units

Complete the following schedule to determine the amount of overhead to allocate to each of the products under activity-based costing (15 points).

		Costs allocated
Activity	Rate	A	B	Total
Production setup
Material handling
Packaging/shipping
Totals