Smile Ltd. manufactures two types of products, Product A and Product B. For costing purposes, the company uses activity-based costing (ABC) and reported the following data for September: Product A Product B 2,000 1,300 Activity Cost driver ABC Rate Materials Number of parts $3.00 per part handling Machining Machine hours $17.00 per hour Assembly Units assembled $3.60 per unit Inspection Units inspected $3.00 per unit Direct costs were as follows: 205 1,000 100 300 1,300 1,200 Product A Product B Labour $14,000 $14,00 Materials $5.400 $2,800 Using activity-based costing, what is the total production cost of Product A? $41,743 None of these options is correct. $32,785 $38,658 Harvey Systems uses a manufacturing facility that costs $500,000 per year and currently uses 85% of the facility's capacity. Recently, a new business has approached Harvey Systems with a proposal that would use the remaining 15% of the available capacity. Overall, this plan would increase the costs of maintaining the facility by 12%. If the stand-alone method were used, what amount of the total cost of maintaining the facility would be allocated to Harvey Systems? $425,000 $410,400 None of these options is correct. $476,000