Part Three Charles Jackson, the accounting manager at Big Al's , has just returned from a conference on activity-based costing in Seattle and thinks

Part ThreeCharles Jackson, the accounting manager at Big Al’s , has just returned from a conference on activity-based costing in Seattle and thinks big Al’s should consider implementing an ABC system at the beginning of Year 2. Charles has identified five primary activities taking place in the production facility at Big Al’s, has traced overhead costs to each activity, and has identified a cost driver for each activity as follows:Estimated Year 2 Overhead CostsActivity