3 Exercise 5-9A (Static) Allocating costs with different cost drivers LO 5-2, 5-3 -.66 ints Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. Activity (Cost) eBook Machine maintenance ($360,000) Setups ($630,000) Cost Driver Number of machine hours Number of setups Deluxe Type of Textbook Moderate Economy Packing ($162,000) Photo development ($504,000) Number of cartons Number of pictures 300 30 10 900 1,200 15 5 4,000 30 2,000 50 1,000 References Check Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required a. Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year: Deluxe 50,000 Moderate 150,000 Economy 200,000 Determine the overhead cost per book for each book type. b. Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system. (For all requirements, round your answers to 2 decimal places.) a. Cost per book (volume-based allocation) b. Cost per book (activity-based costing) Deluxe Moderate Economy