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Item 2

Myra Inc. manufactures two products10,000 units of Product P and 7,000 units of Product Q. The company uses a plantwide overhead rate based on direct labour hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products P and Q:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	$	150,000	10,000	MHs
Machine setups	Number of setups	$	220,000	200	setups
Product design	Number of products	$	50,000	2	products
General factory	Direct labour hours	$	180,000	12,000	DLHs

Activity Measure	Product P	Product Q
Machining	6,000	4,000
Number of setups	50	150
Number of products	1	1
Direct labour hours	8,000	4,000

Required: Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Products P and Q?