Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs according to an annual predetermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staff prepared the following cost estimates for next year (year 2) for the recommended cost drivers. ences Activity Purchasing material Receiving material Betting up equipment Machine depreciation and maintenance Ensuring requlatory compliance Shipping Total estimated cost Recommended Cont Driver Number of purchase orders Direct materials cost Number of production runs Machine-hours Number of inspections Number of units shipped In addition, management estimated 45,000 direct labor-hours for year 2. Assume that the following cost-driver volumes occurred in January, year 2: Shuber of unite produced Estimated Cost 5 138,000 248,000 241.200 83,800 475,200 1,108,800 $ 2,295,000 Estimated Coat Driver Activity 240 purchase orders $3,100,000 120 runs 16,760 hours 54 inspections 616,000 units Silver Gold Platinon Direct labor-bours 32,000 2,000 10,000 1,200 3,000 400 Number of purchase orders Direct materials costs $97,500 $60.000 Bumber of production runs Machine-bou $ 37,500 2 Number of inspections Units shipped 700 0 32,000 175 2 10.000 100 3,000 Labor costs are based on the contractual rate of $25 per hour. Required: