Steven Garcia has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $1,031,140 is based on 51,557 machine hours. In an initial analysis of overhead costs, Steven has identified the following activity cost pools. Cost Pool Product assembly Expected Cost Expected Activities $ 559,000 43,000 machine hours Machine setup and calibration 348,400 5,200 setups Product inspection 66,740 1,420 batches Raw materials storage 57,000 285,000 pounds $ 1,031,140 Steven Garcia is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget information about each product.