system using the following data Cost Cell Phones Cost Driver 12 $100,000 Production Setup Material Handling and Number of Setups Number of Parts 30 20,000 40,000 120,000 Packaging and Shipping Number of Units Shipped160.000 $280,000 buse etste mount of overhead allocated to each of the products under activity- based costing. amount of overhead to be allocated to each product using labor hours allocation base. Assume 60,000 labor hours were used to assemble cell phones b. Compute the as the and 20,000 labor hours were used to assemble pagers. e. Should the company adopt an ABC system? ABC versus traditional costing. Heath Greenshade provides consulting and tax prepa- ration services to his clients He charges a fee of $100 per hour for each service. His revenues and expenses for the year are shown in the fllowing income statement: Tax Consulting Total $80,000 $120,000 $200,000 sss 833 Expenses: Filing, scheduling, and data entry.. . . . . . . . . . . . . . . . Computer costs . . . . Profit.. $104