Evans, Inc., has a unit$-$based costing system. Evans's Miami plant produces $10$ different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials.

The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. $($The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of $60$ percent.$)$

Y $=$ $$5,000,000+$ $$30$X$,$ where X $=$ direct labor hours.

The variable rate of $$30$ is broken down as follows:

Direct labor$ $9$Variable overhead$5$Direct materials$16$