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The following activity cost pools and drivers have been identified: Cost Activity Driver Quality Control $87,360 6,240 inspection hours Setups $75,000 500 setups Material Handling

The following activity cost pools and drivers have been identified: Cost Activity Driver Quality Control $87,360 6,240 inspection hours Setups $75,000 500 setups Material Handling $149,640 1,496,400 pounds of material Equipment Operation $750,000 500,000 machine hours The company makes four products. The standard unit cost information (using the company's traditional overhead cost allocation based on direct labor) appears below: Cube Table Lamp Stands Printer Stands Breakfast Tables Direct Materials $2 $10 $10 $50 Direct Labor $6 $24 $18 $48 Overhead $3 $12 $9 $24 The average direct labor cost is $12 per hour. Estimated production levels and activity driver usage for the upcoming year are as follow: Cube Table Lamp Stands Printer Stands Breakfas

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