9-59. Choosing an Activity-Based Costing System MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the pa 3, 5, 6) ast, it allocated 0 units of ast year, the company produced 10.00 M3100, 17,500 units of M4100, and 10,000 units of M6100 and had the following revenues and costs: cel MTI Income Statement M3100 M4100 M6100 Total ..$9,000,000 $15,000,000 $13,500,000 $37,500,000 Direct costs 3,000,000 4,500,000 3,300,000 10,800,000 600,000 900,000 1,800,000 3,300,000 Direct labor . . .. Variable overhead Setting up machines . Processing sales orders. 2,400,000 1,800,000 2,400,000 1,200,000 900,000 Shipping . Contribution margin. . . Plant administration Gross profit . $14,700,000 6,000,000 . $8,700,000 MTI's controller has heard about activity-based costing and puts together an emp to recommend cost allocation bases. The employee team recommends the following