Second picture is continuation of first

QUESTION 2 (40 marks) ABC Skis Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate and advanced models require increasing degrees of labour, depending on the shaping and finishing processes. ABC Skis Inc. applies all indirect costs to production using a single predetermined overhead (OH) rate based on direct labour hours. A consultant recently suggested that ABC Skis Inc switch to an ABC system and assembled the following information: Activity Recommended Activity Measure Overhead CostMeasure Volume of Activity Estimated orderprocessing Numberoforders-- -- $52,500 | Materials handling Materials used (kilos)] 100 orders -100orders Materials handling Materials used (kilos)$ 585,000 Machine amortization Quality control Number of 122,385 kilos 16,000 hours Machine hours $322,000 94,00040 inspections inspections