BigView Monitors manufactures three different sizes of computer monitors: 15-inch, 17-inch, and 20-inch. The company has recently implemented an activity-based costing system. BigView has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.

		Budgeted
Activity	Cost Driver	Costs
Parts handling	Number of parts	$ 90,000
Parts insertion	Number of parts	990,000
Automated processing	Machine hours	336,000
Testing	Labor hours	68,000
Packaging	Orders shipped	68,000
Total indirect manufacturing cost		$1,552,000

The following information relates to each size of monitor and next year's anticipated manufacturing operations:

	20-inch	17-inch	15-inch
Units to be produced	2,000	3,000	5,000
Orders to be shipped	200	500	800
Number of parts per unit	30	20	10
Machine hours per unit	4	2	1
Labor hours per unit	2	2	2

What is BigView's cost per cost driver for testing for next year (rounded)?

• $3.40 per labor hour
• $1.33 per labor hour
• $6.80 per labor hour
• $3.58 per labor hour