Exhibit 1 Direct material Direct labor hours Direct labor wage rate per hour Sales price per unit caspion S28 0.2 $30 $80.00 sebant $28 0.2 $30 $92.00 My staff has identified for Sabley five cost pools. Information on those cost pools and the related allocation bases are provided in Exhibit 2. Exhibit 2 Value of Equipment setups Purchase orders Machining Testing Packaging Total Costs $11,200,000 $11,200,000 $58,500,000 $11,520,000 $10,200,000 Allocation Base Number of setups number of purchase orders number of machine hours number of testing hours number of containers Allocation Base 40,000 160,000 900,000 720,000 1,200,000 Exhibit 1 Direct material Direct labor hours Direct labor wage rate per hour Sales price per unit caspion S28 0.2 $30 $80.00 sebant $28 0.2 $30 $92.00 My staff has identified for Sabley five cost pools. Information on those cost pools and the related allocation bases are provided in Exhibit 2. Exhibit 2 Value of Equipment setups Purchase orders Machining Testing Packaging Total Costs $11,200,000 $11,200,000 $58,500,000 $11,520,000 $10,200,000 Allocation Base Number of setups number of purchase orders number of machine hours number of testing hours number of containers Allocation Base 40,000 160,000 900,000 720,000 1,200,000