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 $1,900,000 total factory overhead cost. The $1,900,000 was for the planned levels of machine and direct labor hours shown in the following table ProductionProduction Machine hours Direct labor hours Department ADepartment 30,400 19,000 7,600 38,000 The following information relates to the firm's operations for the month of January luxe Regular 380 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 1,520 $ 190 $95.00 $ 25 38 Carter Company is considering implementing an activity-based costing system. Its management accountant has collected the followina information for activitv cost analvsis for the current vear