Hertzlott Machine Shop makes re- placement parts for automotive transmissions. It produces three basic products: gears, shafts, and casings. The company is budgeting activity for 1998. The activity centers, costs, and cost drivers are as follows:

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Activity Center Materials Handling Production Scheduling Setups Manual Machinery Automated Machinery Finishing Packaging and Shipping. Budgeted Costs $ 312,400 116,000 Cost Driver Direct materials cost Number of production orders 144,600 Number of setups 986,000 Direct labor hours 3,212,000 Machine hours 1,798,000 Direct labor hours 234,000 Number of orders shipped The following data are predicted for 1998: Units produced Direct materials cost per unit. Number of production orders Number of setups Direct labor hours Machine hours Number of orders shipped. Gears Shafts Casings 10,000 2,000 700 $60 $80 $100 40 20 10 20 10 14 20,000 10,000 8,400 30,000 15,000 2,800 1,000 1,500 70