Pepper's Products manufactures and sells two types of chew toys for pets, Squeaky and Silent. In May, Pepper's Products had the following costs and revenues: Pepper's Products Income Statement For the Month of May Silent $158,000 21,000 20,000 Total Sales revenue Direct materials Direct labor Overhead costs Squeaky $140,000 21,000 80,000 $298,000 42,000 100,000 Administration Production setup Quality control Distribution 20,000 42,000 19,200 20,000 $ 54,800 Operating profit Pepper's Products currently uses labor costs to allocate all overhead but is considering implementing an activity-based costing system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining overhead