Question: 2. Jackson Enterprises manufactures two productsa basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three

2. Jackson Enterprises manufactures two productsa basic gizmo and an advanced

model gizmo. The company is using an activity-based costing system. They have

2. Jackson Enterprises manufactures two productsa basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs. Activity Cost Driver Cost-Allocation Rate Materials receiving Number of parts $2.00 per part Production setup Number of setups $500.00 per setup Quality inspection Inspection time $90 per hour A production run for the basic model is 250 units, for the advanced model, 100 units. Each unit of product consumes the following activities: Number of Parts Number of Setups Inspection Time Basic Gizmo 10 1 setup 10 minutes per production run Advanced Gizmo 15 1 setup 20 minutes per production run Direct costs for the two products are as follows: Direct Materials Direct Labor Basic Gizmo $50.00 $ 75.00 Advanced Gizmo $95.00 $125.00 The total cost of an advanced model would be $285 b. $65 $200. d. $162 a

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