Cummings Company has identified the following overhead activities costs and activity drivers for the coming year:

The company produces several different subassemblies used by other manufacturers. Information on separate batches for two of these subassemblies follows: 

The company's normal activity is 20,000 direct labour hours. Each batch uses 100 hours of direct labour. Uponinvestigation, you discover that Receiving employs a worker, who spends 75% of her time on the receivingactivity and 25% of her time on inspecting products. Her salary is $80,000. Receiving also uses a forklift, at acost of $12,000 per year for depreciation and fuel. The forklift is used only in receiving.
 

Activity Capacity Activity Setting up $120,000 Inspecting S 90,000 Grinding $180,000 Receiving Expected cost Activity Driver Number of setups 600 Inspection hours 9,000 36,000 Machine hours ? Number of parts 100,000