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 (22%), skirts (26%), dresses (14%), and other (38%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.28 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced	13,000
Price (all figures in )	27.36
Total revenue	355,680
Direct materials	58,400
Direct labor	195,000
Overhead (volume-based)	29,640
Total product cost	283,040
Nonmanufacturing expenses	53,000
Total cost	336,040
Profit margin for trousers	19,640

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:

Pattern cutting	38,540
Grading	32,900
Lay planning	32,000
Sewing	36,800
Finishing	24,300
Inspection	10,800
Boxing up	5,900
Storage	11,800