Simpson Co. currently manufactures easy chairs and recliners. It currently uses a traditional costing system with direct labor hours as the activity to allocate overhead costs to both products. Simpsons total overhead costs are $40,000. The total direct labor hours are 5,000 (2,700 hrs. for easy chairs and 2,300 for recliners). Management is considering switching to the ABC system and has identified the following activities and related drivers:

Activities	Driver	Estimated Overhead	Total Expected Use of Drivers	Expected Use of Drivers by Product
				Easy Chairs	Recliners
Machine Setups	# of setups	$17,500	1,000	700	300
Inspections	# of inspections	$22,500	750	600	150
		$40,000

Using an ABC costing system, the overhead rate for Machine Setups would be $ per setup and the overhead rate for Inspections would be $ per inspection. The TOTAL Overhead Assigned to EASY CHAIRS under ABC would be $ .