sher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs ccording to an annual predetermined rate based on direct labor$-$hours. The plant controller has recommended that the company witch to an activity$-$based costing system. The controller's staff prepared the following cost estimates for next year $($year $2)$ for the commended cost drivers.

$\backslash$table$[[$Activity$,$Recommended Cost Driver,Estimated Cost,Estimated Cost Driver Activity$],[$Purchasing material,Number of purchase orders,$$240$ purchase orders,$],[$Receiving material,Direct materials cost,$216,000,$$$2,700,000$