Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 59,000 units of EX300 and 12,400 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: EX300 TX500 Total r$35% 300 Direct materials $365,325 $161,550 $526,8745 $119,000 42,000 $161,000 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 TX500 (and Activity Measure) OverheadEX300 Machining (machine-hours) 203,850 Setups (setup hours) Product-evel (number of 96,890 General factory (direct labor57,90 $119,000 S Total 203,850 89,000 62,000 151,000 140,400 70 290 360 products) 42,000 2000 $16 $161,000 Total manufacturing overhead cost s 499.100