Fuller Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Beth Orpin, the cost accountant, prepared forthe third quarter of 2014 (during which Fuller made 70,000 tennis racquets and 29,800 badminton racquets). Direct Cost Tennis Racquet TR) Badminton Racquet (BR) Direct materials $17.60 per unit $14.40 per unit Direct labor 31.50 per unit 25.30 per unit Amount of Cost Driver Category Estimated Cost Cost Driver 651,000 Number of inspection hours TR: 15,900 hours; BR: 5,100 hours Unit level Batch level 250,000 Number of setups TR: 82 setups; BR: 43 setups Product leve 155,000 Number of TV commercials TR: 4; BR: 1 Facility level 512,000 Number of machine hours TR: 32,000 hours; BR: 32,000 hours $1,568,000 Total Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment