Senior Basic Deluxe Direct-materials cost $50,000 $ 120,000 $270,000 Direct-labor cost $14,000 $ 3,800 $ 7,700 Kilowatt hours 130,000 120,000 100,000 Engineering change notices 21 20 60 INDIRECT COST Materials handling $ 13,400 Engineering 130,000 Power 10.000 Total indirect production cost $153,400 1. Compute the indirect production costs allocated to each product with the ABC system. 2. Suppose all indirect production costs had been allocated to products in proportion to their direct-labor costs. Compute the indirect production costs allocated to each product. In which product costs, those in requirement 1 or those in requirement 2, do you have the most confidence? Why