Parson Furniture designs and builds factory-made, premium, wood armoires for homes. All are of white oak. Its budgeted manufacturing overhead costs for the year 2017 are as follows.

Overhead Cost Pools Amount Purchasing 45,000 Handling materials 45,000 Production 130,000 Setting up machines 50,000 Inspecting 60,000 Inventory control 80,000 Utilities 110,000 Total budget overhead costs 520,000Direct materials 5,200 Direct labor 3,500 Direct labor hours 200 Number of purchase orders 3 Number of material moves 32 Number of machine setups 4 Number of inspections 20 Number of components 640 Number of square feet occupied 320Activity Estimated Use Cost Pools Cost Drivers of Cost Drivers Purchasing Number of orders 600 Handling materials Number of moves 5,000 Production Direct labor hours 65,000 Setting up machines Number of setups 1,000 Inspecting Number of inspections 4,000 Inventory control Number of components 40,000 Utilities Square feet occupied 50,000