Q$3-$ Activity$-$Based Costing

Hanover Company has collected the following information in order to assist in assigning overhead an ABC system.

$\backslash$table$[[$Cost Pool,Activity Cost,Cost Driver,Driver Consumption$],[$Machine Setups,$$360,000,$Setup hours,$4,000],[$Materials Handlling,$100,000,$Pounds of material,$20,000],[$Electric Power,$40,000,$Kilowatt hours,$40,000]]$

The following costs pertain to product A and B$,$ two of its many products.

$\backslash$table$[[,$A$,$B$],[$# units produced,$4,000,20,000],[$DM cost$,$$$42,000,$$$54,000$