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 $1,100,000 total factory overhead cost. The $1,100,000 was for the planned levels of machine and direct labor hours shown in the following table. Machine hours Direct labor hours Production Department A 4,400 22,000 Production Department B 17,600 11,000 The following information relates to the firm's operations for the month of January: Units produced and sold Unit cost of direct materials Hourly direct labor wage rate Direct labor hours in Department A per unit Direct labor hours in Department B per unit Deluxe 220 $ 110 25 Regular 880 $55.00 $ 22 1 1 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