Hansen Company uses activity-based costing. The factory overhead budget for the coming period is $1,053,000, consisting of the following:

Cost Pool	Budgeted Amount
Supervision	$320,000
Machine usage	420,000
Machine setups	187,000
Design changes	126,000
Totals	$1,053,000

The potential allocation bases and their estimated amounts were as follows:

Allocation Base	Budgeted Amount
Number of design changes	35
Number of setups	110
Machine hours	6,000
Direct labor hours	10,000

a. What is the reason behind the difference in the costs of the job using Activities-based costing vs. the direct labor hour method of applying overhead?