Aero3D Ltd produces a range of filament cartridges for 3D printers. The cartridges are produced in batches. The production process involves condensing, shaping, and putting on spools using two special machines and manual labour.

Two of their filament cartridges are the XS PRO and the POLYX both made from thermoplastic polyester. The XS PRO is selling for 175 and the PLOYX for 225.

The budgeted data for 2021 is as follows: MODEL: XS PRO POLYX 3,400 1,800 Budgeted output for the year units units Direct material weight per unit 1.2kg 1.4kg Direct material cost per unit E8 E10 Direct labour time per unit 0.1 hour 0.2 hour Direct labour cost per unit $2.00 $4.00 Number of batches 60 40 Shaping machine time per unit 0.50 hour 0.70 hour ACTIVITY COST POOL COST DRIVER Condensing machine E450,000 Number of production batches Shaping machine E130,000 Shaping machine hours Manual handling of material $55,000 Weight of material handled Budgeted core costs, for management and administration, are $62,000