P24-24A The Nichbur Manufacturing Company in Hondo, Texas, assembles and tests electronic components used in Handheld video phones. Consider the following data regarding component T24 58100 Duect materials cost Activity costs allocated Manufacturing padactos The activities required to build the component follow. Cost Allocated Activity Allocation Base to Each Unit Stact station Number of raw component chassis 2 x $ 1.30 $ 2.60 Dip insection Number of dip insertions ? XS 0.40 12.00 Manual insertion Number of manual insertions 12 X $ 0.80 ? Wave solder Number of components soldered 1 X $ 1.60 1.60 Backload Number of backload insertions 7 x $ 4.20 Test Testing hours 0.40 X $80.00 ? Defect analysis Defect analysis hours 0.10 x $5.00 Total $_1 Continued... Requirements 1. Fill in the blanks in both the opening schedule and the list of activi- ties. (p. 1209) 2. How is labor cost assigned to products under this ABC product cost- ing system? 3. Why might managers favor this ABC system instead of Nichbur's older system, which allocated all conversion costs on the basis of direct labor? (pp. 1209--1210)