Soni Limited manufactures headphones which can be used on smart phones and tablets have recently adopted ABC (Activity based costing) to allocate overhead costs. Soni Limited manufactures two models of headphones to cater for two different markets. Model 100 has basic functions, while Model 200 is a more sophisticated model which is wireless and includes blue tooth connectivity, noise cancelling and a closed back earcup design to reduce low frequency interference. The following overhead cost pools and activity drivers have been determined by management. Overhead Cost Pool Budgeted Overhead Cost Activity Driver Machine set-ups Material handling $200,000 Number of setups Waste control Quality control inspection Other overhead costs $80,000 Number of units of raw materials used $40,000 Kilos of waste $50,000 Number of inspections $175,000 Labour hours 12,000 units of MODEL 100 are produced which have the following production requirements: Activity Driver Number of setups Number of units of raw materials used Kilos of waste No of activities 50 Set-ups 30,000 units 200 kilos Number of inspections 40 inspections Labour hours 1,000 hours