You are the newly appointed CFO for stars which manufactures specialty personal protective outfits for hospitals. You adopted a normal job order costing system and also activity based costing to better understand the costs of producing the different types of outfits. Norton identified four activities - machining, engineering, assembling, and inspecting under activity based costing system. Under the old traditional volume-based costing system, overhead is assigned to different jobs using machine hours.

Activity Costs Driver Amount of Driver Machining $560,000 Machine hours 4,000 Engineering 240,000 Engineering hours 8,000 Assembling units 390,000 Assembly labour hours 12,000 Inspecting products 150,000 Inspection hours 3,000 The following are the jobs Norton worked on in February. Style A Style B Style C Style D Balance, Feb 1 $45,600 $37,200 $0 October activity: Direct materials $79,400 $94,100 $43,200 $84,500 Direct labour $65,000 $53,700 $31,800 $62,300 Machine hours 30 50 100 170 Engineering hours 140 90 70 300 Assembly labour hours 200 320 280 250 Inspecting hours 80 60 10 20