Bandit Manufacturing produces three products: Desk Lamps, Floor Lamps and Ceiling Lamps The following information is available for each product.

Bandit Manufacturing produces three products: Desk Lamps, Floor Lamps and Ceiling Lamps The following information is available for each product Desk Floor Ceiling Direct material cost per unit Direct labor cost per hour $2.00 S8.00 $10.00 S15.00 S16.75 $18.00 Bandit Manufacturing presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026 The product leader for Floor has suggested that Bandit Manufacturing switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year Estimated Recommended Estimated Cost Driver Activity Cost DriverUnits Purchase Orders S33,912 1256 Purchase Ordering Cost Orders Machine Operations Machine Hours $1,425,000 12500 Hours Compliance 125,400 Test EnvironmentalCompliance 110 Test Total OH Cost S1,584,312