ThePurple Face Mask Companyis carefully examining its pricing based upon a change in product demand. Currently, the company uses a volume-based pricing system with direct labor hours as the cost driver. They are considering a system using machine hours as the cost driver. The company estimates the following:

• Estimated Total Direct Labor Hours: 125,000
• Estimated Total Machine Hours: 200,000
• Estimated Total Manufacturing Overhead:$5,000,000
• Each batch is produced in batches of 500 Face Masks

The Batch ticket for Batch 19for the Ladies Lavendar Masksshows the following:

Batch Number 19Direct Labor - Mask MakersDirect MaterialKarim - 10 hours @ $25 per hourCloth - 20 yards @ $300 per yardBarry - 15 hours @ $25 per hourElastic - 10 spools @ $10 per spoolJasmine - 40 hours @ $35 per hourPlastic Inserts - 60 boxes @ $25 per boxOther Information:Masks produced: 500Machine hours used: 400 machine hours