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Flowing Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates

Flowing Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates the amount of overhead that should be assigned to the individual product lines. Budgeted inspection costs are $4,500. Additional information is as follows:

Small Pumps Large Pumps
Units inspected 240 120
Hours spent inspecting 6 24

If units inspected is the cost driver for this activity, the inspection cost assigned to one large pump would be:

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