Knoxville, Inc., uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows: 001 002 Units produced 38,000 50,000 Machine-hours 15,000 17,000 Direct labor-hours 16,000 24,000 Materials handling (number of 8,000 12,000 moves) Setups 10,000 14,000 The following costs are reported: Materials handling $160,000 Labor-related overhead $480,000 Setups $240,000