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Sean Connery Corporation manufactures two products Mock Swords and Shields. The annual production and sales of Swords is 2,000 units, while 8,000 units of Shields

Sean Connery Corporation manufactures two products Mock Swords and Shields. The annual production and sales of Swords is 2,000 units, while 8,000 units of Shields are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Swords require 1.0 direct labor hours per unit, while Shields require 0.5 direct labor hours per unit. The total estimated overhead for the period is $245,000. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: Activity Cost Pool Estimated Overhead Cost Swords Shields Total Setups $12,000 200 batches 500 batches 700 batches Machining $136,000 900 machine hours 850 machine hours 1,750 machine hours Finishing $97,000 2,000 direct labor hours 4,800 direct labor hours 6,800 direct labor hours Total $245,000 The overhead cost per shield using an activity-based costing system would be closest to

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