Listed next are several activities and related costs that have been observed at Santana Company, a manufacturing company. The company makes a variety of products and currently uses a traditional costing system that allocates only production overhead based on direct-labor hours. It is implementing an ABC system for the design, production, and distribution functions of its value chain. You have been asked to complete the following table by indicating for each activity whether the related cost is direct, indirect, or unallocated. For each indirect cost, indicate one appropriate cost-allocation base (more than one cost-allocation base may be appropriate). The first two items have been completed foryou.

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Activity Related Cost Traditional ABC Supervisor salaries Depreciation of computers Mechanic wages Indirect (direct-labor Indirect (people hours) Unallocated Designing a prototype for new product Indirect (number of parts) Setting up for a production run Purchasing materials and parts to be used in products Materials and parts cost Shipping sold products to customers (distributors) Fuel used on company's fleet of trucks Market research study conducted by marketing staff Salaries of market research staff to assess demand for potential new product Production scheduling Salaries of production scheduling Purchasing materials and parts to be used in products Order processing of customer orders Preparing cost analyses Designing a new product managers Salaries of purchasing agents Salaries of order processing s Cost accountant salary Salaries of design engineers that are S1112 staff fully dedicated to this new product Managing overall operations Salary of executve of company