1 Fleet Street Incorporated a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (25%), skirts (33%), dresses (14%), and other (28%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.61 per unit produced. The results for the trousers line, using the volume-based approach, are as follows: Number of units produced Price (all figures in ) Total revenue Direct materials 13,000 29.23 379,990 62,500 208,600 Direct labor Overhead (volume-based) *33,930 Total product cost 305,030 Nonmanufacturing expenses 57,100 Total cost 362,130 Profit margin for trousers 17,860 Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line. is as follows: