3) Mr. Jones also wants to consider an Activity Based Costing System He indicates that the company has two main products and three main activities as follows: Activity Issuing Purchase Orders Reviewing Receiving Reports Making Phone Calls Cost Driver Amount # of Purchase Orders # of Receiving Reports # of Phone Calls $ 150,000 $ 175,000 $450,000 During the Year 100,000 phone calls were made in the department; 50,000 purchase orders were issued; and 20,000 shipments were received. Product A required 200 phone calls; 150 receiving reports; and 150 purchase orders. Product B required 350 phone calls; 400 receiving reports; and 100 purchase orders. Mr. Jones wants you to: a) Compute the amount of the Department's costs that are to be allocated to each product. 12 Marks