Michelle Corporation manufactures a variety of skin and beauty products, including its best-selling product, a hydrating lotion. In addition to tracking direct costs for all of its products, Michelle allocates MOH costs by using one plant-wide MOH rate based on DL costs. Total MOH costs are budgeted to be $1.515,000, while total DL costs are estimated at $500,000. After discussions with her peers, the controller at Michelle decides to break down the MOH costs into key activities, as shown below. Perhaps if she allocates the company's MOH costs using more detailed rates and cost drivers, she will have more accurate cost information with which to make better future decisions. Activity Budgeted Cost Budgeted Quantity of Cost Driver Setup 5.000 setup bours Production Inspection Packaging Total $255,000 760,000 340,000 160,000 $1,515,000 95,000 machine hours 20.000 inspection hours 80,000 packages Required Allocate MOH costs to Michelle's lotion product using the activity-based rates, recognizing the actual usage of the four activity. drivers was as follows. 500 setup hours 8,300 machine hours 1.900 inspection hours 19,700 packaging hours Setup Production Inspection Packaging Total $ Allocated MOH D