Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs an cost drivers for next year: Overhead Item Expected Costs Setup costs Ordering costs Maintenance Power Cost Driver $1,468,800 Number of setups 390,000 Number of orders 2,760,000 Number of machine hours 264,000 Number of kilowatt hours Maximum Quantity 7,200 65,000 80,000 440,000 Total predicted direct labor hours for next year is 52,000. The following data are for two recently completed jobs: Job 201 Job 202 $14,000 $15,500 Cost of direct materials Cost of direct labor $22,100 $65,800 Number of units completed 1,300 1,150 Number of direct labor hours 220 270 Number of setups 15 19 Number of orders 21 42 Number of machine hours 450 360 Number of kilowatt hours 200 300