Question: Not understanding the ABC solution problem. Sandhill Pizza, Inc. is in the process of documenting all its costs using Activity-Based Costing (ABC). Sandhill specializes in

Not understanding the ABC solution problem.

Sandhill Pizza, Inc. is in the process of documenting all its costs using Activity-Based Costing (ABC). Sandhill specializes in unique sauces, and it has assigned the following Manufacturing Overhead (MOH) costs to the key activities: Moving and Sorting (160 pounds moved), $32000; Quality Control (780 inspections completed), $20280: and Cleaning/Maintenance (2200 cleaning/maintenance hours) $17300. The actual activities for each of the two products is presented here. Activity and Cost Driver Red Sauce White Sauce Move and sort ingredients (# of pounds moved) 90 70 Quality control (# of inspections) 610 170 Cleaning and maintenance (# of hours) 1490 710 The company bottled a total of 420 red sauce units and 360 white sauce units during the year. How much of the quality control MOH would be allocated to red sauce units? O $19084.00 O $15860.00 O $11024.00 O $26884.00

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