The company has implemented an activity-based costing system for its manufacturing overhead costs, with the activity cost pools and activity driver data below.

Activity drivers Basic product Advanced Activity Activity cost Total line product line Machine setup $ 200 000 200 setups 50 setups 150 setups Material receiving 120 000 80 000 kilograms 30 000 kilograms 50 000 kilograms Inspection 160 000 1 600 inspections 700 inspections 900 inspections Machinery-related 840 000 60 000 MH* 20 000 MH 40 000 MH Engineering 280 000 7 000 EHT 3 000 EH 4 000 EH Total overhead $1 600 000 * MH = machine hours. + EH = engineering hours