Longyearbyen Co$.$ incurs $$1,050,000$ of overhead costs each year in its three main departments, machining $($$$600,000),$ inspections $($$$300,000)$ and packing $($$$150,000).$ The machining department works $4,000$ hours per year, there are $600$ inspections per year, and the packing department packs $1,000$ orders per year. In the past a traditional overhead allocation system was used using direct labor hours. They are considering switching to an activity based costs allocation of overhead.

Information about Longyearbyen's two products is as follows:

$\backslash$table$[[,$Product Coal,Product Beer$],[$Machine Hours,$1,000MHs,3,000MHs$