Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers Estimated Cost Recommended Cost Driver Activity Processing orders Setting up production Handling materials Machine depreciation and maintenance Performing quality control Packing Total estimated cost Estimated Cost $ 45,000 144,000 364,000 240,000 57,150 144,000 $994.150 Driver Activity 200 ordens Number of orders Number of production runs Pounds of materials used Machine-hours Number of inspections Number of units 90 runs 30,000 pounds 12,000 hours 45 inspections 480,000 units In addition, management estimated 7,000 direct labor-hours for year 2 Assume that the following cost driver volumes occurred in January, year 2: InstitutionalStandard 11,000 $13,000 580 Number of units produced Direct materials costs Direct labor-hours Number of orders Number of production runs Pounds of material Machine-hours Number of inspections Units shipped 58,000 $35,000 450 13 20,000 S25,000 460 16,000 590 6,000 120 2,700 70 58,000 20,000 11,000 Actual labor costs were $15 per hour