Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 54,000 units of EX300 and 11,900 units of TX500. The company's 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 company's two product lines is shown below Direct materials Direct labor EX300 $360,325 $114,000 TX500 $156,550 39,500 Total $516,875 $153,500 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 (and Activity Measure) Manufacturing Overhead EX300 84.000 45 TX500 59,500 240 Total $ 179,375 Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) 143,500 285 96,900 78,310 44,515 $114,000 $39,500 $153,500 Total manufacturing overhead cost $399,100