Implement an activity based costing system for a manufacturing company producing two products Product A and Product B The following information is available Activity 1 (Setup) $200,000 Activity 2 (Machine Hours) $300,000 Activity 3 (Quality Control Inspections) $150,000 Product A requires 100 setups and 500 machine hours Product B requires 50 setups and 800 machine hours Allocate the overhead costs to each product using the ABC system Present your calculations in a tabular format, and discuss the implications for product costing decisions

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Question: Implement an activity-based costing system for a manufacturing company producing two products: Product A and Product B. The following information is available: Activity 1 (Setup):

Implement an activity-based costing system for a manufacturing company producing two products: Product A and Product B. The following information is available:

- Activity 1 (Setup): $200,000
- Activity 2 (Machine Hours): $300,000
- Activity 3 (Quality Control Inspections): $150,000
- Product A requires 100 setups and 500 machine hours.
- Product B requires 50 setups and 800 machine hours. Allocate the overhead costs to each product using the ABC system. Present your calculations in a tabular format, and discuss the implications for product costing decisions.

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