QUESTION 6 2 points Save Answer Vroom-Vroom manufactures miniature cars and has determined that its total manufacturing cost of $1,500,000 is a mixture of unit-level costs, product-level costs, and facility-level costs. Vroom-Vroom has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units and product lines). Facility-level costs are not allocated to production. Total Manufacturing Costs Collector Products Retail Products Unit-level costs $600,000 300,000 units 700,000 units Product-level costs 700,000 20 lines 28 lines Facility costs 200,000 NA NA $1,500,000 How much cost would be allocated to the Retail division under an activity-based costing system that reflects an appropriate hierarchy? (Please round to the nearest dollar at the end of your calculations) QUESTION 2 2 points Save Answer Paul's Pipes manufactures custom pipe fittings. Total manufacturing overhead costs were $10,000,000. In the past Paul allocated costs using a simple absorption costing system using machine-hours as the driver. However, Paulis now considering switching to an activity-based costing system. He has determined that the total manufacturing overhead cost is a mixture of machine-level, unit-level, product-level, and batch-level costs. Paul has prepared the following information regarding manufacturing costs and driver usage. Total Manufacturing Expected Driver Usage Overhead Costs Machine-level costs $4.000.000 40,000 hours Unit-level costs 2,000,000 8,000,000 units Batch-level costs 3,000,000 1,500 batches Product-line costs 1,000,000 40 lines 10,000,000 The Household Plumbing division used 14,000 machine hours, produced 1,000,000 units, ran 42 batches, and encompasses 6 product lines. What was the reported overhead cost applied to the Household Plumbing division under the old system