Product Number of Number of Machine Ornaments Machine Inspection Sq footage Ornaments Batches Operation per box Operation per Box per box per per Box ornament (D) (B) (C) (E) (F)=(D*E) (A) (G) (H) Small 420,000 800 4 12 48 1 H Colored Glass Large 300,000 750 4 6 24 2 0.5 Colored Glass Specialty 100,000 500 5 5 4 0.2 Ornament Total 820,000 2,050 13 19 77 7 1.7 Based on historical five year plant administration and other data (Exhibit 5) and the fact plant administration mainly includes supervision, labor relations and clerical jobs we came to the conclusion that plant administration should be allocated on basis of total direct labor cost (as a cost driver). In other words, as stated earlier cost driver tells us what is it that's causing a particular firm to incur cost. In case of plant administration it looks like labor is causing firm to incur cost. (i.e. supervision, labor relations and clerical jobs)