Bender Electric Motors produces electric motors used by home appliance and other manufacturing companies. Each motor is built to customer specifications although the number of units requested may vary from one to as many as $2,000.$

Bender has recently adopted an activity$-$based costing system with the following overhead costs and drivers.

$\backslash$table$[[$Cost Pool,Annual Amount,Annual Activity,Cost Driver$],[$Direct labor$-$related,$$400,000,$$$1,000,000,$Direct labor cost$],[$Material ordering,$100,000,5,000,$Purchase orders$],[$Material inspection,$600,000,4,000,$Receiving reports$],[$Equipment setup,$200,000,1,000,$Setups$],[$Quality control,$400,000,2,000,$Inspections of motors$],[$Machine$-$related,$800,000,40,000,$Machine hours$],[$Miscellaneous$,400,000,$$$4,000,000,$Product costs other than miscellaneous overhead$],[$Total overhead,$$2,900,000,,]]$

Recently the company received an order from Kromer's Department Stores for $10$ identical motors for use in a holiday display. Bender estimates the following costs and activities related to the order:

$\backslash$table$[[$Material cost$,$$$500.$ Calculate the cost of the kromer job using the new abc system. Calculate the cost of the kromers job assuming the company used a traditional costing system with receiving reports as the only allocation base.