uestion 1 (3 points) Saved 1. ADA Pharmaceutical Company produces many types of drugs sold at drugstores. Eme Weissman, the president of ADA has just read about activity-based costing in a trade journal and has asked her controller Takedo Simon, to examine differences in product costs between the firms current costing system and activity-based costing systems. ADA I going to focus on their two top selling drugs when looking at activity-based costing. ADA has the following budget information for the year. Diomycin Homycin Cost of Direct Materials Cost of Direct Labor Number of DL Hours Number of capsules $205,000 $250,000 7,200 1,000,000 $265,000 $234.000 6,800 500,000 ADA has identified the following activities and cost drivers and has assigned them a total cost of $200,000. Activity Machine Setup Plant Management Supervision of DL. Quality Inspection Order expediting Total Overhead Cost Driver Setup hours Number of workers Direct Labor hours Inspection hours Customers needed Budgeted overhead $16.000 $35,000 $40,000 350 400 $51,600 $200,000 Cost driver volume 1.600 1.200 16,000 1,050 645 Takedo gathered the following information about the cost driver volume for each product. Diomycin Homycin Setup hours Number of workers DL Hours Inspection Hours Customers served 200 200 7,200 150 400 6,800 200 100 Use activity based costing to calculate the unit cost of each product