Activity$-$Based Costing

Slack Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools:

$\backslash$table$[[,$Fabrication Department,Finishing Department,Cost Driver$],[$Maintenance$,$$$50,000,$$$40,000,$Machine hours$],[$Materials handling,$30,000,15,000,$Material moves$],[$Machine setups,$70,000,5,000,$Machine setups$],[$Inspections$,-,25,000,$Inspection hours$],[,$$$150,000,$$$85,000,]]$

The following activity predictions were also made for the year:

$\backslash$table$[[,$Fabrication Department,Finishing Department$],[$Machine hours,$10,000,5,000],[$Material moves,$3,000,1,500],[$Machine setups,$700,50],[$Inspection hours,$-,1,000]]$

It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to evaluate the company's product mix strategy regarding two of its five product models, ZX$300$ and SL$500.$ The company has been using a companywide overhead rate based on machine hours but is considering switching to either department rates or activity$-$based rates. The production manager has provided the following data for the production of a batch of $100$ units for each of these models:

$\backslash$table$[[,Zx300,SL500$