Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (21%), skirts (23%), dresses (14%), and other (42%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.82 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced 11,000 Price (all figures in ) 31.30 Total revenue 344.300 Direct materials 56,700 Direct labor 189.300 Overhead (volumebased) 31,020 Total product cost 277.020 Nonmanufacturing expenses 51,600 Total cost 328.620 Profit margin for trousers 15.530 I cost (labor and overhead) for the eight activities, trousers line, is as follows: Pattern cutting E36, 710 Grading 31, 600 Lay planning 30, 800 Sewing 35 , 100 Finishing 23, 600 Inspection 10 , 400 Boxing up 5, 600 Storage 11, 200