College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center.

Activity	Recommended Cost Driver	Estimated Cost			Estimated Cost Driver Units
Setting up production	Number of production runs	$	28,000		100	runs
Processing orders	Number of orders		52,000		200	orders
Handling materials	Pounds of materials		14,000		7,000	pounds
Using machines	Machine-hours		60,000		10,000	hours
Providing quality management	Number of inspections		48,000		40	inspections
Packing and shipping	Units shipped		40,000		20,000	units
		$	242,000

In addition, management estimated 2,000 direct labor-hours for year 5.

Assume that the following cost driver volumes occurred in February, year 5:

	Short			Medium			Tall
Number of units produced		1,100			400			500
Direct materials costs	$	4,000		$	2,500		$	2,000
Direct labor-hours		90			130			130
Number of orders		7			8			5
Number of production runs		2			5			8
Pounds of material		400			700			200
Machine-hours		500			400			200
Number of inspections		2			3			1
Units shipped		1,100			400			400

Direct labor costs were $20 per hour.

b. Compute the production costs for each product for February using direct labor-hours as the allocation base and the predetermined rate computed in requirement a. (Do not round intermediate calculations.)

	Short	Medium	Tall
Direct materials	$4,000	$2,500	$2,000
Direct labor
Overhead
Total costs