Gordon Company produces custom$-$made machine parts. A setup activity is required for the batches of parts that it produces. Activity output is measured using setup hours. The value$-$added standard $($SQ$)$ for this activity is zero. On July $1,$ at the beginning of the fiscal year, $2$ setup hours were allowed and used per batch. The standard wage rate for setup labor is $$17$ per setup hour. During the first quarter of the new fiscal year, the company is planning to implement a new setup method developed by Gordon$$s industrial engineers that is expected to reduce setup time by $50$ percent. The new procedure was implemented during the first quarter and the improvement expected was realized.

If required, round hours to two decimal places and costs to the nearest cent.