Magnolia Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the amount of activity driver used for each of Magnolias two products, the activity rate, and the activity cost assigned to each product.

			Driver Usage
Activity	Cost	Activity Driver	Prod. 1	Prod. 2	Activity Rate		Activity Cost:Prod. 1	Activity Cost:Prod. 2
Design	$40,470	Design time	860	1,270		/hour
Preparation	$48,720	Labor hours	3,080			/hour	$24,640
Machining	$135,460	Machine hours			$26	/hour	$39,520
Finishing		Batches	201	300	$46	/batch
Inspection		Units			$16	/unit	$10,720	$18,240
Packaging		Orders		50	$307	/order	$13,508
Shipping	$12,882	Packages	73			/package		$4,633