22 Miller Manufacturing (2M) makes a variety of components for mechanized agricultural equipment. The products are similar but not identical, and all go through many of the same processes. 2M sells products worldwide and has to comply with various regulations regarding environmental and health and safety compliance. For the most part, 2M manufacturing practices comply with or exceed requirements in the countries to which it ships its products, but depending on the specific part ordered, it might have to go through additional certification processes to make the sale. The company produces to order and never has any work-in-process inventories. The manufacturing facility uses a job costing system for product costing. Manufacturing overhead is applied to jobs based on direct labor cost. The cost analyst at 2M recently put together an estimate of overhead for the coming year, which is shown in the following table: Category Fabricating Machining Machine setup Shipping Certification Total Amount $ 483,200 966,400 770,400 435,600 243,600 $ 2,899,200 The following are estimates for the three jobs planned for March: Direct materials Direct labor Number of units Direct labor hours Machine-hours Setup-hours Certification required? Job MM03-11 $10,000 Job MM03-12 Job MM03-13 $ 14,800 $ 26,000 $ 40,400 $ 12,400 $ 33,200 300 750 600 360 1,200 540 750 1,050 900 15 Yes 30 15 Yes No 2M is considering adopting an activity-based costing system. The cost analyst has studied the system and has recommended the following cost drivers for each of the overhead categories. The analyst has also estimated the annual volume for each of the cost drivers. This information follows.