1. manufactures two products, A and B, and incurs overhead costs in two production departments, Mixing and Filling. The annual overhead costs in each production department are as follows:

• Mixing Dept. overhead = $155,000 + $25 per machine-hour
• Filling Dept. overhead = $280,000 + $60 per machine-hour
• Each unit of Product A requires 1 machine-hour in the Mixing Department and 3 hours in the Filling Department.
• Each unit of Product B requires 5 hours in the Mixing Department and 2 hours in the Filling Department.

During 2017, 30,000 units of A and 25,000 units of B were produced.