Lily Company manufactures two products, Regular and Supreme. Lily's estimated overhead costs consist of machining, $4000000; and assembling, $2000000. Information on the estimated use of the cost driver by the two products is as follows: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Regular using traditional costing using direct labor hours is