Mona LISA Malaysian Direct materials $ 4. 20 $3. 20 Direct labor $0. 30 $0. 30 CEI's controller believes the existing costing system may be providing misleading cost information . She Has developed an activity based analysis of the 2014 budgeted manufacturing overhead costs shown in the following table* Activity Cost- Allocation Base Budgeted Activity Budgeted Cost Purchasing Purchase orders 1 , 158 $579, 000 Materials handling* Setups 1. 800 720, 000 Quality control Batches 144, 000 Roasting Roasting hours 96, 100 961 , 000 Blending* Blending hours 3.3, 600 3:36, 000 Packaging Packaging hours 26. 0 260,000 Total manufacturing O / H cost $ 3,000, 000 Data regarding the 2014 production of the Mona Loa and Malaysian coffee follow . There will be no beginning or Ending materials inventory for either of these coffees . Mona Loa Malaysian ExpectEd sale ( pounds ) 100, 000 2,000 Batch size ( pounds ) 10.000 500 Setups ( per batch ) 3 Purchase order size ( pounds ) 25, 000 500 Roasting time ( hour / 100 pounds ) 1 Blending time ( hour / 100 pounds ) 0. 5 0 . 5 Packaging time ( hour / 100 pounds! 0. 1 0 . 1