Sunland makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $2,400,000: Rate Assembly $0.80 per direct labor hour Fabrication $15 per machine hour Setups $20 per batch $168,000 direct to Complex Bonding Only the Complex product requires bonding, so all the costs of bonding should be allocated to Complex. The following data relate to both products. Simple Complex Units produced 100,000 40,000 Direct labor hours 220,000 170,000 Machine hours 80,000 40,000 Batches 2,000 4,000