Mittens 36 2. ABC Corp uses an Activity Based Costing system. The accountants at ABC have identified three major 37 activities and their related cost drivers. ABC manufactures Hats, Coats and Mittens. 38 39 Activity Cost Driver 40 Materials Processing Direct Materials Cost 41 Machine Maintenance Maintenance Hours 42 Measurement Weighing of Goods 43 44. Direct Costs for Each Product for this month are as follows: 45 Cost Driver Hats Coats 46 Direct Materials Cost 35% 30% 47 Maintenance Hours(in $) 24% 20% 48 Weighing of Goods 35% 28% 49 50 Indirect Costs for the month is as follows: 51 52 Materials Processing $38,000 53 Machine Maintenance $25,000 54 Measurement $23,000 55 Total $86,000 56 57 Required: 58 Compute the indirect manufacturing costs allocated to each product using activity based costing. 59 30 30% 32% 26% Other 5% 24% 11%