Pauls Pipes manufactures custom pipe fittings. Total manufacturing overhead costs were $10,000,000. In the past Paul allocated costs using a simple absorption costing system using machine-hours as the driver. However, Paul is now considering switching to an activity-based costing system. He has determined that the total manufacturing overhead cost is a mixture of machine-level, unit-level, product-level, and batch-level costs. Paul has prepared the following information regarding manufacturing costs and driver usage.

Total Manufacturing Overhead Costs Expected Driver Usage Machine-level costs $4,000,000 40,000 hours Unit level costs 2,000,000 8,000,000 units Batch-level costs 3,000,000 1,500 batches Production-line costs 1,000,000 40 lines 10,000,000

The Household Plumbing division used 6,000 machine hours, produced 2,000,000 units, ran 49 batches, and encompasses 7 product lines. What was the reported overhead cost applied to the Household Plumbing division under the old system?