*Problem 7-22 Voss Visuals 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. Activity Pool Binding Printing Product design General Total overhead costs Department Costs $297,000 955,500 234,000 727,500 $2,214,000 Cost Driver Number of units Machine hours Change orders None Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets Books 62,500 20,000 $3.00 $10.00 $4.00 $8.00 30,000 19,200 150,000 144,000 1,500 2,400 Voss's managers have gathered the following information about selling and administrative costs. Activity Pool Shipping Advertising Commissions Total selling and administrative costs Total Cost Cost Driver $240,000 Pounds shipped 157,500 Number of mailings 168,125 5% of sales price $565,625 Weight Advertising mailings Sales commission Selling price per unit Tablets 20,000 pounds 125,000 5% of sales price $35.00 Books 40,000 pounds 100,000 5% of sales price $75.00