Problem 7-35 Production-Based Costing versus Costs to Activities, Resource Drivers Activity-Based Costing, Assgnin Willow Company produces lawn mowers. One of its plants produces two versions of mower. a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the year, the following daa were prepared for this plant: Basic Model Deluxe Model Expected quantity Selling price Prime costs Machine hours Direct labour hours Engineering support (hours) Receiving (orders processed) Materials handling (number of moves) Purchasing (number of requisitions) Maintenance (hours used) Paying suppliers (invoices processed) Setting up equipment (number of setups) 40,000 $180 $80 5,000 10,000 1,500 250 1,200 100 1,000 250 16 20,000 $360 S160 5,000 10,000 4,500 500 4,800 200 3,000 500 64