MovieTime Corporation produces furniture and fixtures for home theatre installations. John Jones, the owner of the company, recognized a trend in home theatre installations starting about three years ago and began working with local design firms and home builders to offer affordable yet high-quality furnishings for new construction and renovation markets. The companys most popular product is a leather upholstered recliner with a cup holder and snack tray built into each chairs arms. Last year, John decided to implement an ABC system to better understand the overall cost structure and to ensure he was charging competitive prices that would also allow the firm to remain profitable over the longer term.

The ABC system is designed to allow direct material and direct labour to be traced directly to each of the companys four main products. The system also includes four activity cost pools for overhead: Quality Control and Inspection, Order Processing, Delivery and Installation, and Other. The activity measures are units produced for Quality Control and Inspection, number of orders for Order Processing, and number of deliveries for Delivery and Installation. The Other cost pool has no activity measure. The following costs will be assigned using the ABC system:

Indirect factory salaries	$	520,000
Delivery crew wages expense		140,000
Delivery vehicle operating expenses and depreciation		95,000
Procurement and order processing salaries and expenses		103,000
Office expenses		25,000
Other administrative expenses		225,000
Total cost	$	1,108,000

The distribution of resource consumption across the activity cost pools is as follows:

	Quality Control and Inspection			Delivery and Installation			Order Processing			Other			Totals
Indirect factory salaries		50	%		25	%		20			5	%		100	%
Delivery crew wages expense		0	%		75	%		10	%		15	%		100	%
Delivery vehicle operating expenses and depreciation		0	%		80	%		10	%		10	%		100	%
Procurement and order processing salaries and expenses		10	%		10	%		65	%		15	%		100	%
Office expenses		15	%		15	%		35	%		35	%		100	%
Other administrative expenses		15	%		5	%		40	%		40	%		100	%

The ABC system at MovieTime contains the following activity cost pools and activity rates this year:

Activity	Total Activity
Quality control and inspection	4,800	units produced
Delivery and installation	1,200	deliveries
Order processing	920	orders processed
Other	None

Activity data have also been supplied for the leather recliner product line:

Activity	Total Activity for the Leather Recliner Product Line
Quality control and inspection	1,200	units produced
Delivery and installation	300	deliveries
Order processing	230	orders processed

Required:

1. Compute the activity rates for the ABC system.

2. Determine the total overhead cost that would be assigned to the leather recliner product line using the ABC system.