Vines Corporation produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $125 per direct labour hour. The managers of Vines Corporation decided to switch from a manual system to software programs that release materials and that signal machines when to begin working. Simultaneously, the company adopted an activity-based costing system. The manufacturing process has been organized into six activities, each with its own supervisor who is responsible for controlling costs. The following list indicates the activities, cost drivers, and cost allocation rates: Cost Cost per Unit Activity Driver of Cost Driver Material handling Number of parts $ 0.40 Milling Machine hours 24 Grinding Number of parts 0.90 Assembly Hours spent in assembly 5 Inspection Number of units produced 30 Shipping 1,400 Number of orders shipped The company's information system automatically collects the necessary data for these six activity areas. The data for two recent jobs follow: Job Order 410 411 Direct materials cost $ 9,500 $ 59,400 Direct labour cost $ 600 $ 11,500 Number of direct labour hours 30 325 Number of parts 450 2,600 Number of machine hours 100 1,300 Number of job orders shipped 1 1 Number of units 10 250 Number of hours in assembly 3 20