The Adam Manufacturing Company in Rochester, Minnesota, assembles and tests electronic components used in smartphones. Consider the following data regarding component T24 (amounts are per unit) (Click the icon to view the data table) The activities required to build the component follow (Click the icon to view the activity data.) Read the requirements Data table Data table Direct materials cost Direct labor cost Activity-based costs allocated S 79.00 Activity Allocation Base Costs Allocated to Each Unit 17.00 Start station Number of raw component chasiss 3-$ 1.10 $ 330 ? Dip insertion Number of dip insertions 7x 045 13.95 2 Manual insertion Number of manual insertions 11- 0.30- ? Total manufacturing product cost Wave solder Number of components soldered 34 1.70- 5.10 Backload Number of backload insertions 8.A 7.20 Test Number of testing hours 043- 00.00 Print Done Defect analysis Number of delect analysis hours 012- 8:40 5? Total activity based costs Requirements 1. Complete the missing items for the two tables. 2. Why might managers favor this ABC system instead of Adam's older system, which allocated all manufacturing overhead costs on the basis of direct labor hours? - X Requirement 1. Complete the missing items for the two tables Begin by completing the table for the total indirect activity costs. Activity Allocation Base Costs Allocated to Each Unit Start station Dip insertion Number of raw component chasiss 3 x S 1.10 = $ 3.30 Number of dip insertions 0.45 13.95 Manual insertion Number of manual insertions 0.30= Wave solder Number of components soldered 1.70= 5.10 Backload Test Number of backload insertions 8K 7.20 Number of testing hours 043 80.00 8.40 Defect analysis Number of defect analysis hours 0.12 K Total activity-based costs Now, complete the table for the total manufacturing product cost Direct materials cost 79.00 Backload Test Number of backload Insertions 8 x 7.20 Number of testing hours 043- 80.00 8.40 Defect analysis Number of defect analysis hours 012- Total activity-based costs Now, complete the table for the total manufacturing product cost Direct materials cost Direct labor cost 79.00 17.00 Activity based costs allocated i Total manufacturing product cost Requirement 2. Why might managers favor this ABC system instead of Adam's older system, which allocated all manufacturing overhead costs on the basis of direct labor hours? Managers favor this multiple-rate, activity-based costing system because it better pinpoints control and it provides more accurate data for for planning and