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Healthy Hound, Inc., makes two lines of dog food: (1) Basic Chunks and (2) Custom Cuts. The Basic Chunks line is a dry food that Is processed almost entirely by an automated process. Custom Cuts is a canned food made with real horsemeat. The slabs of meat are cut and trimmed by hand before belng shoveled Into an automated canning machine. Basic Chunks sells very well and Is priced significantly below competitive brands. Sales of Custom Cuts have been on the decline, as the company has falled to keep the brand price competitive. Other Information concerning each product line is provided as follows Basic Custom Chunks Cuts Number of units produced and sold per month Direct materials cost per unit Direct labor cost per hour Direct labor hours per unit 5, 2,ee 4. $ 12$ 12 e.1e e.e1 Units for Basic Chunks refer to bags, units for Custom Cuts refer to cases. The company currently allocates manufacturing overhead to each product line on the basis of direct labor hours. Budgeted manufacturing overhead per month is $24,600, whereas budgeted direct labor hours amount to 2,500 per month. Healthy Hound recently hired a consultant to examine its cost accounting system. The consultant recommends that the company adopt activity-based costing to allocate manufacturing overhead. She proposes that the following cost pools and cost drivers be used Amount Allocated $ 8,eee 1,eee 15,eee Total Driver Cost Pool Cost Driver Volume 1ee,eee kwh Utilities Maintenance Depreciation of plant and equipment Miscellaneous Kilowatt-hours Machine-hours Square feet occupied Direct labor hours 200 mh 80,eee sq. ft 60e 2,5ee DLH Total allocation $24,6ee The amount of driver activity corresponding to each product line is as follows. Cost Driver Kilowatt-hours Machine-hours Square feet occupied Direct labor hours Basic Chunks 90,820 kwh Custom Cuts 1e,eee kwh 40 mh 20,eee sq. ft. 16e mh ,eee sq. ft 500 DLH 2,eee DLH Requirec a. Allocate manufacturing overhead costs to each product line using direct labor hours as a single cost driver. (Do not round Intermediate calculations.) Manufacturing Overhead Allocated Using DLH Basic Chunks Custom Cuts