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Question 3 of 5 View Policies < > Current Attempt in Progress Trendy Toys & Games, Inc. manufactures specialty toys. Trendy uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Trendy assigns its quality-control overhead costs to all products at a rate of 19% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $307,000. In response to repeated requests from its financial vice president, Trendy's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Activity Cost Pools Assembly Line Inspection Cost Drivers Number of pounds Number of finished toys Materials Inspection pounds National Toy Association Certification Retail orders Overhead Rate $0.70 per pound $0.15 per toy $2.00 per order Number of Cost Drivers Used per Activity 53,000 116,000 toys 800 orders