Fleet Street Incorporated a manufacturer of high$-$fashion clothing for women, is located in South London in the UK$.$ Its product line consists of trousers $(45\%),$ skirts $(35\%),$ dresses $(15\%),$ and other $(5\%).$ Fleet Street has been using a volume$-$based rate to assign overhead to each product; the rate it uses is $2\mathrm{.}25$ per unit produced. The results for the trousers line, using the volume$-$based approach, are as follows:

$\backslash$table$[[$Number of units produced,$10,000],[$Price $($all figures in $),20\mathrm{.}525],[$Total revenue,$205,250],[$Direct materials,$33,750],[$Direct labor,$112,500],[$Overhead $($volume$-$based$),22,500],[$Total product cost,$168,750],[$Nonmanufacturing expenses,$31,500],[$Total cost$,200,250],[$Profit margin for trousers,$5,000]]$

Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost $($labor and overhead$)$ for the eight activities, after allocation to the trousers line, is as follows:

$\backslash$table$[[$Pattern cutting,$2,000$