Cain Components manufactures and distributes various plumbing products used in homes and other buildings. ton Over time, the production staff has noticed that products they considered easy to make were difficult to sell t margins considered reasonable, while products that seemed to take a lot of staff time were selling well despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information. The controller decided that a good summer project for the intern would be to develop, in one self-contained area of the plant, an alternative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There Cost Pools Costs 840,000 Direct material cost 8,750,000 Machine-hours 840,000 Activity Drivers Manufacturing Machine setup Shipping Production runs $1,260,000 Units shipped In this particular area, Cain produces two of its many products: Standard and Deluxe. The following are data for production for the latest full year of operations: Products Standard Deluxe 325,000 235,000 $810,000 410,000 Total direct material costs Total direct labor costs Total machine-hours Total number of setups Total pounds of material Total direct labor-hours Number of units produced and shipped 220,000 75 30,000 6,000 25,000 130,000 135 15,000 3,750 5,000