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Atter reviewing the new activity-based costing system that Janis McGee has implemented at Joplin Industries's Port Arthur manufacturing facility, Kris Kristoff, the production supervisor, believes that he can reduce production costs by reducing the time spent on machine setups. He has spent the last month working with employees in the plant to change over the machines more quickly with the same reliability. He plans to produce 117,000 units of J25P and 48,500 units of J40X in the first quarter. He believes that with his more efficient setup routine, he can reduce the number of setup hours for both the J25P and the J40x products by 18 percent. Direct material Direct labor $1,517,000 $2 434 000 Assembly S 767,000 $634,000 394,000 Packaging 1007 000 Total direct labor Direct costs Overhead Assembly building Assembling$30 per mh) Setting up machine (@ $900 per setup hour) Handling material (@$3,000 per run) S 214,000 $ 934,00 377,000 137,000 44,500 32,500 Packaging buil Inspecting and Packing (@$5 per direct labor-hour) Shipping (@ $1,320 per shipment) Total ABC overhead 334,000 149.000 31,000 298,000 Total ABC cost $4.065,000 $5,339,000 Number of units Unit cost $ 3474 11008 Required Compute the amount of overhead allocated to the J25P and the J40X cameras for the first quarter using activity-based costing Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours Assume the cost of a setup hour remains at s9o0 Total A J25P J40X

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