Problem 7-20 Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Cost Driver Costs Binding Printing Product design General Number of units Machine hours Change orders None $260,625 816,903 192,654 646,350 Total overhead costs $1,916,532 Other information is as follows: Units Direct Direct labor cost per unit Direct labor hour:s Machine hours Change orders Tablets Books 62,800 20,000 $2.97 $10.35 S4.13 $7.93 25,200 16,500 127,000 122,000 1,500 2,100 materials cost per unit