1. Identify the activities. 2. Identify the cost driver(s) for each activity identified in step #1. 3. Calculate the rate per cost driver. 4. Assign costs to products by multiplying the rate per cost driver from step #3 to volume of cost driver units consumed.

Stumptown Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below.

Walls Mirrors Specialty Windows

Units produced 40 20

Material moves per product line 5 15

Direct labor hours per product line 200 300

Budgeted material handling costs: $50,000

Under an activity-based costing (ABC) system, what would be the materials handling costs allocated to one unit of specialty windows?