Pharoah Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate and advanced models require increasing degrees of labour, depending on the shaping and finishing processes. Pharoah applies all indirect costs to production using a single predetermined overhead (OH) rate based on direct labour hours (DLH). Management estimates that 25,200 DLH will be used in the upcoming year, at a rate of $19 per hour. Assume that the following activity took place in the first month of the new year: Beginner Intermediate Advanced Number of units produced 16,800 6,700 2,500 Direct materials costs $17,500 $10,900 $6,700 Direct labour hours 400 800 1,700 Number of orders 6 4 3 Number of production runs 2 2 3 Kilograms of material used 6,700 2,700 1,300 Machine hours 1,000 250 170 Number of inspections 3 3 3 Number of units shipped 15,100 6,300 2,100