Isadore's implements, Inc., manufactures pens and mechanical ponds often used fee gifts. Overhead costs are currently costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: 

    

Required:  

a. Compute the amount of overhead to be allocated to each product under activity-based costing. (Do not round intermediate calculations.)  

 

b. Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.1 for pencils and 0.1 for pens and that 55,000 boxes of pencils and 75,000 boxes of pens were produced during the period. (Do not round intermediate calculations.)  

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Cost Driver Number of setups Number of parts Number of boxes shipped Cost Driver Volume Pens 31 6 Pencils 20 Activity Setting up Inspecting Packing and shipping Total overhead Cost $102,000 30,000 65,000 $197,000 55,000 75,000 Cost Driver Number of setups Number of parts Number of boxes shipped Cost Driver Volume Pens 31 6 Pencils 20 Activity Setting up Inspecting Packing and shipping Total overhead Cost $102,000 30,000 65,000 $197,000 55,000 75,000