Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 63,000 units of EX300 and 12,800 units of TX500. The companys conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the companys two product lines is shown below: TX500 EX300 Tota Direct materials $369,325 $165,550 $534,875 Direct labor $123,000 44,000 $167,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below Activity Activity Cost Pool Manufacturing EX300 TX500 Total (and Activity Measure) Overhead 227,650 64,000 Machining (machine-hours) 93,000 157,000 Setups (setup hours) 420 180,600 330 91,080 Product-level number of products) $167,000 General factory (direct labor dollars 68,470 $123,000 44,000 Total manufacturing overhead cost 567,800