Sheridan Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Problem 7-20 Sheridan Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Cost Driver Number of units Machine hours Change orders None Costs Binding Printing Product design General $256,055 798,045 182,600 611,295 Total overhead costs $1,847,995 Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets Books 62,900 20,000 $2.94$10.21 $4.01 $7.90 25,000 16,500 126,000 121,000 1,400 2,200