Problem 6-12 (Part Level Submission) The Marx Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools: Strawberry Cheesecake: Annual production Direct materials per unit Direct labor per unit 19,200 units $10 $2 Cost Pool Materials ordering Materials inspection Equipment setup Quality control Other Total manufacturing overhead Cost $76,680 73,800 90,300 67,080 74,800 $382,660 Cost Driver Number of purchase orders Number of receiving reports Number of setups Number of inspections Direct labor cost Annual activity information related to cost drivers Strawberry Cheesecake 110 Cost Pool All Products Materials ordering Materials inspection Equipment setup Quality control Other 8,520 orders 360 receiving report 2,580 setups 2,580 inspections 180 $38,400 $1,870,000 direct labor