Duration-Based Costing Gee Manufacturing produces two models of camshafts used in the production of automobile engines: Regular and High Performance. Gee currently uses an ABC system to assign costs to the two products. For the coming year, the company has the following overhead activities, costs, and activity drivers: Expected Cost Activity Setups $214,612 Activity Driver Setup hours Machining $420,000 Machine hours Moving Total OH $112,500 $747,112 Move hours Activity Capacity 10,000 20,000 5,000 At practical capacity, the expected activity demands for each product are as follows: Regular High Performance Performance Model Model Units completed 30,000 8,000 Setup hours 8,000 2,000 Machine hours 6,000 14,000 Moving hours 1,000 4,000 The production cycle time for the regular performance camshaft is 0.50 (hours per unit) and that of the high performance camshaft is 2.5 (hours per unit).