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MotoMover makes three models of motorized skateboards. At present, all indirect costs are applied to production using a single predetermined overhead (OH) rate based on direct labour-hours. Management would like you to provide an analysis of the costs of manufacture of the three models that compares the present approach to costing with the ABC approach to costing. Management is not confident that its products are priced appropriately relative to its competitors. The following information has been assembled regarding the activity cost pools and cost drivers.

Activity	Recommended Activity Measure	Estimated Overhead Cost			Annual Expected Volume of Activity Measure
Order processing	Number of orders	$	210,000		190	orders
Materials handling	Materials used (kilograms)		517,720		122,800	kilograms
Machine depreciation and maintenance	Machine-hours		324,500		17,100	hours
Quality control	Number of inspections		76,000		50	inspections
		$	1,128,220

In addition, management estimates that 40,000 DLHs will be used in the upcoming year, at a rate of $12 per hour. Assume that the following activity took place in the first month of the upcoming year:

	Economy			Deluxe			Supreme
Number of units produced		27,000			10,000			4,000
Direct materials costs	$	27,880		$	19,600		$	13,000
Direct labour-hours		650			1,225			2,100
Number of orders		6			4			3
Number of production runs		2			2			3
Kilograms of materials used		10,000			4,600			2,500
Machine-hours		1,520			540			400
Number of inspections		3			3			3
Number of units shipped		20,000			8,750			2,750

Required:

1.	Compute the production cost for each product in the first month of the upcoming year, using DLHs as the allocation base. (Round your intermediate calculations to nearest cent.) Economy Deluxe Supreme
	Direct material Direct Labour Overhead Total production cost

2.	Compute the production cost for each product in the first month of the upcoming year, using ABC. (Round your intermediate calculations to nearest cent.)
	Economy Deluxe Supreme Direct material Direct labour Overhead Total product cost

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