Total cost Per unit cost 308 510 Total direct material costs Total direct labor costs Total machine-hours 308 $ 60,000 $168,000 40,000 Products 510 $ 27,000 $198,000 160,000 Total number of setups 50 100 Total pounds of material 17,200 8,200 Total direct labor-hours 5,200 8,200 Number of units produced and shipped 40,000 20,000 Cost Pools Costs Incoming inspection $ Production 261,000 1,450,000 Machine setup 825,000 Activity Drivers Direct material cost Machine-hours Setups Shipping 480,000 Units shipped Incoming inspection Production Machine setup Shipping % of material dollars per machine-hour per setup per unit Total cost Per unit cost 308 510