Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two$-$stage cost allocation system. The first

stage assigns all factory overhead costs to two production departments, A and $B,$ based on machine hours. The second stage uses

direct labor hours to allocate overhead to individual products.

For the current year, the firm budgeted $$1,650,000$ total factory overhead cost. The $$1,650,000$ was for the planned levels of machine

and direct labor hours shown in the following table.

The following information relates to the firm's operations for the month of January:

Carter Company is considering implementing an activity$-$based costing system. Its management accountant has collected the following

information for activity cost analysis for the current year: