Detroit Foundry, a large manufacturer of heavy equipment components, has determined the follow-

ing activity cost pools and cost driver levels for the year:

Activity Cost PoolActivity CostActivity Cost Driver

Machine setup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$660,00012,000 setup hours

Material handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100,0002,000 tons of materials

Machine operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .450,00010,000 machine hours

The following data are for the production of single batches of two products, C23 Cams and U2

Shafts during the month ofAugust:

C23 CamsU2 Shafts

Units produced...........................................500300

Machine hours............................................45

Direct labor hours.........................................200400

Direct labor cost..........................................$5,000$10,000

Direct materials cost.......................................$30,000$20,000

Tons of materials..........................................12.58

Setup hours..............................................