31. Computing Product Costs Using Activity-Based Costing. Ralston Company identified the following activities, estimated costs for each activity, and identified cost drivers for each activity for this coming year. (These are the first three steps of activity-based costing.) Estimated Annual Estimated Annual Activity Cost Driver Overhead Costs Cost Driver Activity Production setup Materials handling Quality control Number of production runs $ 60,000 100 production runs Yards of material purchased Number of inspections Total 80,000 $280,000 140,000 10,000 yards purchased 800 inspections The company produces two products, MX1 and MX2. Information about these products for the month of July follows: