Wyoming Manufacturing Limited has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHs). The company has two products, Widgets and Trinkets, about which it has provided the following data:

Widgets. Trinkets

Direct Materials per unit. $7.25. $57.70

Direct Labour per unit. $2.00. $12.00

Direct labour hours per unit. 0.20. 1.20

Annual production 45,000. 10,000

The firm's estimated total manufacturing overhead for the year is $1,521,960 and the firm's estimated total direct labour-hours for the year is 21,000.

The company is considering using activity-based costing to determine its unit product costs.Data for this proposed activity-based costing system appear below:

Activities Widgets Trinkets Total

Supporting direct labour. 9,000 12,000 21,000

Setting up machines 814 374 1,188

Parts administration 924 1,012 1,936

Activities & Drivers Estimated MOH cost

Supporting direct labour (DLH) $352,000

Setting up machines (setups) $201,960

Parts Administration (part types) $968,000

Total $1,521,960