Problem 7-27 Swifty Skiffs manufactures three models of speedboats-Superior, Deluxe, and Ultra-which are sold through marine retail stores. Budgeted information for the coming year is as follows Superior Deluxe Ultra Total Sales revenue $53,717,250 $86,074,650 $101,533,200 $241,325,100 Direct material 17,406,60027,151,710 Direct labor Overhead Gross profit 84,562,070 39,929,735 70,368,390 $46,464,905 40,003,760 16,424,960 10,542,450 12,962,325 Boats produced and sold Machine hours per boat rior Deluxe Ultra 1,005 1,203 802 300 100 200 Currently, the company allocates overhead using a single predetermined rate based on machine hours Irvin Swifty is considering implementing an activity-based costing system. After studying the company's operations, he developed the following five activity cost pools Cost Driver Activity Machining Machine setup and calibration Quality inspections Materials receiving Machine hours Number of setups Number of inspections Number of deliveries Overhead Cost $13,960,800 23,841,310 13,958,280 6.980.000