David Inc. manufactures bobblehead dolls of famous baseball players. These dolls are in high demand from fans. The company currently uses a plantwide overhead rate in order to allocate overhead to each job. They use direct labour hours as their cost driver. The following estimates are available for the upcoming year: Direct Overhead Machine Labour Costs Hours Hours Molding Painting $ 240,000 40,000 15,000 $280,000 24,000 35,000 Total $520,000 64,000 50,000 Management would like to explore the use of activity based costing. For molding, the company will use machine hours as the activity driver and for painting they will use direct labour hours as the activity driver.