Fairchild, Inc., manufactures two products, Regular and Deluxe, and applies overhead on the basis of direct labor hours. Anticipated overhead and direct labor time for the upcoming accounting period are $1,600,000 and 25,000 hours, respectively. Information about the company's products follows.

Regular?

Estimated production volume: 3,000 units

Direct materials cost: $28 per unit

Direct labor per unit: 3 hours at $15 per hour

Deluxe?

Estimated production volume: 4,000 units

Direct materials cost: $42 per unit

Direct labor per unit: 4 hours at $15 per hour

Fairchild's overhead of $1,600,000 can be identified with three major activities: order processing ($250,000), machine processing ($1,200,000), and product inspection ($150,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow.

Orders Processed Machine Hours Worked Inspection Hours Regular 320 16,000 4,000 Deluxe 180 24,000 6,000 Total 500 40,000 10,000