Loveless Brands packages single-sized servings of salt and salt substitute for fast food restaurants. The activities required to package salt are fewer and less complex than for salt substitute. The direct costs of producing the two products are as follows:

Salt Salt Substitute

Direct Materials $0.12 $0.14

Direct Labor $0.14 $0.18 Overhead is currently assigned to the two products on the basis of machine hours. The following information is provided regarding overhead costs:

Activity	Traceable Costs	Cost Driver	Salt Line	Salt Sub Line	Total
Setup	$ 65,000	# of Setups	140	140	280
Packing	$ 135,000	# of Machine Hours	25,000	55,000	80,000
Inspection	$ 45,000	# of Batches	300	400	700
	$ 245,000