After reviewing the new activity-based costing system that Nancy Chen has implemented at IVC's CenterPoint manufacturing facility Tom Spencer, the production supervisor, believes that he can reduce production costs by reducing the time spent on machine setu He has spent the last month working with employees in the plant to change over the machines more quickly with the same reliabilit He plans to produce 114,000 units of the Sport model and 47,000 units of the Pro model in the first quarter. He believes that with his more efficient setup routine, he can reduce the number of setup hours for both the Sport and the Pro products by one-third. Cost Drivers and Cost Driver Volumes-CenterPoint Manufacturing Facility Activity Assembly building Assembling Setting up machines Handling material Packaging building Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Cost Driver Machine-hours Setup hours Production runs Direct labor-hours Inspecting and packing Shipping Number of shipments Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Assembling (@$30 per MH) Setting up machines (@ $900 per setup hour) Handling material (@$3,000 per run) Total ABC cost Number of units Unit cost Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@$1,320 per shipment) Total ABC overhead Sport Cost Driver Volume Pro 7,400 54 22 31,400 540 54 65,600 114 25,600 228 Sport $ 1,514,000 $ 764,000 1,004,000 $ 1,768,000 $ 3,282,000 $ 222,000 48,600 66,000 328,000 150, 480 $ 815,080 $ 4,097,080 114,000 $ 35.94 Total 38,800 594 76 91,200 342 Pro $ 2,428,000 $ 628,000 388,000 $ 1,016,000 $ 3,444,000 $ 942,000 486,000 162,000 128,000 300,960 $ 2,018,960 $ 5,462,960 47,000 $ 116.23 Required: a. Compute the amount of overhead allocated to the Sport and the Pro drones 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 $900.