Comprehensive ABC (Learning Objectives 2 &3) Workflow Systems specializes in servers for work-group, e-commerce, and enterprise resource planning (ERP) applications. The company's original job cost system has two direct cost categories: direct materials and direct labor. Overhead is allocated to jobs at the single rate of $27 per direct labor hour. A task force headed by Workflow's CFO recently designed an ABC system with four activities. The ABC svstem retains the current system's two direct cost categories. Thus, it budgets only overhead costs for each activity. Pertinent data follow: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.10 Machine setup Number of setup:s $470.00 Assembling Assembling hours $120.00 Shipping Number of shipments $1,280.00