The ABC team calculated the usage of resources by product as: Direct Material Costs Direct labor Costs Shipments Machine Hours Production Runs Units O Inspection Activity Based on the above analysis and other information given in the problem data, which activities costs appear to be the most mis-allocated (in dollar terms) when direct labor costs are used to assign overhead costs to products? Assembly Activity O Setting up Activity H10 68% 63% 71% 75% 71% 83% O Packaging Activity H20 32% 37% 19% Inspections 25% Assembly 19% Setting up 17% Packaging

The ABC team calculated the usage of resources by product as: Based on the above analysis and other information given in the problem data, which activities costs appear to be the most mis-allocated (in dollar terms) when direct labor costs are used to assign overhead costs to products? Inspection Activity Assembly Activity Setting up Activity Packaging Activity