using the activity allocation rates, estimate the profuction costs for each product for 2021

QUESTION 1 ABC Ltd makes three products and applies overhead using a predetermined rate based on direct labour hours. The management accountant of this company recommended switching to activity-based costing (ABC). The following activities, cost drivers, and costs are identified and estimated for 2021. The company also estimated 1,000 labour hours (wage rate = 10/hour) would be worked. I Annual estimates Costs Activities 50,000 100 Activity Production setup Order processing Materials handling Equipment depreciation and maintenance Quality management Packing and shipping Total estimated overhead Recommended cost driver Number of production runs Number of orders Pounds of materials used Machine hours 10,000 30,000 200 15,000 100,000 10.000 Number of inspections 50,000 Number of units shipped 60,000 300.000 100 10.000 The following activities occurred in 2021, Product A Product B Product C Number of units produced 2.000 1.000 500 Direct materials costs 3,000 6,000 5,000 Direct labour hours 500 300 200 Number of production runs 35 20 45 Number of orders 55 105 40 Pounds of materials used 8.500 1.500 Machine hours 5,000 5.500 3.000 1,500 Number of inspections 35 40 25 Number of units shipped 2.500 2000 5.500 REQUIRED: Please note: a maximum word count applies to some parts of this question MacBook