Problem 18-3 Activity Cost Rates Tailgator Company produces four versions of its model 17-21 bicycle seat. The four versions have different shapes, but their processing operations and production costs are identical. During July, the following costs were incurred Direct materials Leather Metal frame Bolts $25,430 39,180 3,010 Materials handling Labor Equipment depreciation Electrical power Maintenance 8,232 4,410 2,460 5,184 Assembly Direct labor 13,230 Engineering design: Labor Electrical power Engineering overhead 4,116 1,176 7,644 Overhead Equipment depreciation Indirect labor Supervision Operating supplies Electrical power Repairs and maintenance Building occupancy overhead 7,056 30,870 17,640 4,410 10,584 21,168 52,920 July's output totaled 29,400 units. Each unit requires three machine hours of effort. Materials handling costs are allocated to the products based on direct materials cost, engineering design costs are allocated based on units produced, and overhead is allocated based on machine hours. Assembly costs are allocated based on direct labor hours, which are estimated at 882 for July During July, Tailgator Company completed 520 bicycle seats for Job 14. The activity usage for Job 14 was as follows: direct materials, $1,150; direct labor hours, 15