Activity	Activity Cost Driver	Estimated activity usage	Estimated Cost
Production	Machine hours	600,000	$1,650,000
Materials	Lbs of etching solutions	175,050	525,150
Cleansing	DLH (cleansing)	85,000	275,000
Inspection	# of inspections	3,500	122,600
Direct materials cost	$8,750
Direct labor cost	$14,600
Direct labor hours (in production)	1,175
Direct labor hours (in cleansing)	780
Lbs of material	6,850
Number of setups	15
Types of etching solution	6
Number of inspections	275
Number of machine-hours	3,570

1)Using current traditional costing (plantwide) method, estimate the total cost estimate of the proposed job. Ms. Fischer expects to use a total of 125,000 direct labor hours for the upcoming fiscal year.

2)Using current ABC method, estimate the total cost estimate of the proposed job.

3) Use ABM to address to Ms. Fischers concern about process inefficiencies driving up costs.