Expected usage and costs for manufacturing overhead are as follows:

Cost Pool Description	Cost Pool	Cost Driver	Cost Driver Usage
Fabrication costs	$250,000	Number of machine hours	10,000
Engineering costs	$150,000	Number of change orders	750
Hazardous waste disposal	$350,000	Gallons of hazardous waste	700
Total manufacturing overhead	$750,000

The following information relates to Motorbike #633, which was started and completed during the year:

Direct Material cost per pound:	$55		Machine hours used:	30
Pounds of Direct Materials used on job:	160		Change orders:	2
Direct Labor cost per hour:	$20		Gallons of hazardous waste:	12
Direct Labor Hours used:	60

1. Calculate the total cost of Motorbike #633 using the proposed activity based costing system.

2.. Based on your cost allocations from Req. 5 and the sales price you calculated in Req. 3, what was their actual gross profit? What information does this calculation provide to management about their current costing system?