Sunshine Company currently uses traditional costing procedures, applying $400,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow.

Product	Pool No. 1 (Driver: DLH)	Pool No. 2 (Driver: SU)	Pool No. 3 (Driver: PC)
X	400	25	1,300
Y	600	75	700
Pool Cost	$160,000	$140,000	$100,000

The overhead cost allocated to product Y by usingtraditionalcosting procedures would be:

2. $ 36,000.
3. $160,000.
4. $240,000.
5. $266,000.
6. $300,000"