Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers: Total Pooled Category Unit Batch Product Facility Cost $ 360,000 194,400 105,600 300,000 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Cost Driver Machine hours Number of production orders Time spent by research department Rent, general utilities, maintenance, facility depreciation, Square footage administrative salaries Additional data for each of the product lines follow: Direct materials cost Commercial $ 25.00/unit Home Miniature Total $ 15.00/unit $ 12.00/unit Direct labor cost $ 10.00/hour Number of labor hours Number of machine hours Number of production orders 6,000 10,000 200 $ 8.00/hour 12,000 $ 9.00/hour 2,000 45,000 25,000 20,000 80,000 2,000 800 3,000 Research and development time 10% 20% 70% 100% Number of units 15,000 Square footage 20,000 45,000 50,000 14,000 30,000 74,000 100,000