Activity Based Costing Nerdzy has also considered restructuring the manufacturing plant to produce batches of products to increase efficiency. They would like you to analyze what the impact would be on the cost of each product if they switch to an activity-based production and accounting method. 0 Allocation Base Estimated MOH Costs 1 Setup 2 Production 3 Testing # of batches 22,019.44 Machine Hrs 159,640.94 # of Tests 55,048.60 Packaging # of Batches 38,534.02 5 275,243.00 5 7 8 9 Activity Allocation Base 1 Setup # of batches 2 Production Machine Hrs 3 Testing # of Tests 4 Packaging # of Batches 5 6 7 8 0 1 2 3 4 5 6 Standard Premium Standard Premium Total 65 52 71 50 8,231 28 2,844 18 18,221 19 38 238 166,455 195,751 103 51 67 25 45 188 Note, the number of units per product item can be found in the previous problem information. You will need this for part b. **Note, the DM & DL costs per product can also be found in the previous problem information, which you will need for part c. 7 Requirements: 8 3.a Compute the predetermined overhead allocation rate (POAR) for each activity. 93.b Allocate overhead costs to the different products based on the activities required. 03.c Calculate the total production cost of each product. 1