Total production overhead $5,017,500 Envelopes Cups Direct costs $8,250,000 $8,750,000 Units produced 1,500,000 350,000 Machine hours 200,000 50,000 Direct labor hours 34,500 153,625 Number of quality inspections 1,000 6,500 Revenue generated by the two products $15,000,000 $16,800,000 You have determined, using ABC, that overhead can be assigned to separate cost pools specifically: Pool 1 = $1,260,000 using machine hours as the cost driver Pool 2 = $2,257,500 using direct labor hours as the cost driver Pool 3 = $1,500,000 using the number of quality inspections as the cost driver 4. Using the new cost pools and cost drivers calculate gross profit and the rate of return of the two products