Maxey & Sons manufactures two types of storage cabinetsType A and Type Band applies manufacturing overhead to all units at the rate of $136 per machine hour. Production information follows.

Type A Type B Anticipated volume (units)27,20051,000Direct-material cost per unit$36$54Direct-labor cost per unit4141

The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities' three respective cost drivers, follow.

Type A Type BTotalSetups156116272Machine hours54,40076,500130,900Outgoing shipments200150350

The firm's total overhead of $17,802,400 is subdivided as follows: manufacturing setups, $3,884,160; machine processing, $10,681,440; and product shipping, $3,236,800.