Vines Corporation produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct lebour. 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 $115 per direct lebour 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 Driver Cost per Unit of Cost Driver Material handling Milling Number of parts Machine hours Number of parts Hours spent in assembly Number of units produced Number of orders shipped 0.60 38 0.70 30 1,400 The company's information system automatically collects the necessary data for these six activity areas. The data for two recent jobs follow: 410 411 Direct materials cost Direct labour cost Number of direct labour hours Number of parts Number of machine hours Number of job orders shipped Number of units Number of hours in assembly 9,800 59,000 750 11,200 375 400 3,000 150 1,250 30 10 200 40