Perrington Water Treatment Services has one division that manufactures two models of residential water treatment systems. The controller is considering implementing an activity-based costing system for over- head costs. In looking at the operations for the past year, the following overhead costs were reported:

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Materials handling $120,000 Receiving 40,000 Engineering 90,000 Depreciation on machinery. 60,000 Power 30,000 Setups 84,000 Maintenance 80,000 Packing for shipment 35,000 Total $539,000