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A Pharmaceutical Company produces three drugs -Diomycin, Homycin, and Addolin-belonging to the analgesic (pain- er) family of medication. Since its inception four years ago, ADA has used a direct labor hour-based system to assign nufacturing overhead costs to products. e Weissman, the president of ADA Pharmaceutical, has just read about activity-based costing in a trade journal. With me curiosity and interest, she asked her financial controller, Takedo Simon, to examine differences in product costs tween the firm's current costing and activity-based costing systems. DA has the following budget information for the year: Cost of direct materials Cost of direct labor Number of direct labor hours Number of capsules $282,800 247,000 7,170 970,000 $262,000 231,000 6,770 497,000 $255,000 268,000 1,970 297,000 ADA has identified the following activities and cost drivers and has assigned them a total overhead cost of $ OverheadCost Driver cost Driver Setup hours Numben of Workers Direct labor hours Inspection hours Customers served Volume 1,570 1,17e 15,700 1,035 630 Activity Machine setup Cost Supervision of direct labor Quality inspection Order expediting Total overhead $ 15,700 35,700 45,700 50,100 51,300 5198,500