Fifer Company produces two types of entry doors: the Hollow Core and the Solid Door models. The Company has used direct labor dollars to allocate the overhead cost $47,450,000. The companys CFO, Brian Smythe , has offered the following information regarding the two products: Hollow Core Solid Door Sales in units 400,000 50,000 Sales price per unit $475.00 $650.00 Direct materials per unit 55.00 130.00 Direct labor cost per unit 75.00 50.00 The company has hired you as an outside consultant to review the cost system and make recommendations. You decide that an Activity Based Cost system should be considered and compile the following information based on conversations with the production manager: Activity Cost Driver Cost Order Taking Number of orders $ 500,000 Setups Number of setups 5,000,000 Machine cost Number of machine hours 41,950,000 The number of transactions for each cost driver is as follows: Cost Driver Total Hollow Solid Number of orders 500 100 400 Number of setups 2,500 2,000 500 Number of machine hours 600,000 300,000 300,000