American Manufacturing Incorporated is considering using activity-based costing (ABC) versus a traditional predetermined overhead (POH) rate for product costing purposes. The traditional POH rate is $30 per direct labor hour and the following activity rates have been developed for ABC: Activity Cost Driver Activity Rate Material handling Pounds of material $2 per pound Cleanup and waste disposal Pounds of waste $20 per pound Quality inspection Inspection hours $100 per hour Actual activity incurred to produce Job 123 is as follows: Direct labor hours Pounds of material Pounds of waste Inspection hours 500 hours 1,000 pounds 420 pounds 26 hours Manufacturing overhead assigned to Job 123 will be: Multiple Choice $2,000 higher using POH versus ABC. $2,000 higher using ABC versus POH. $15,000 using ABC. $13,000 using POH