Exercise 5-9A (Algo) Allocating costs with different cost drivers LO 5-2, 5-3 Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. Activity (Cost) Machine maintenance ($360,000) Setups ($780,000) Packing ($196,000) Photo development ($512,000) Cost Driver Type of Textbook Deluxe Moderate Economy Number of machine hours 300 900 1,200 Number of setups Number of cartons Number of pictures 40 15 10 20 50 70 3,800 1,800 800 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required a. Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year: Deluxe 60,000 Moderate 180,000 Economy 240,000 Determine the overhead cost per book for each book type. b. Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system. (For all requirements, round your answers to 2 decimal places.) a. Cost per book (volume-based allocation) b. Cost per book (activity-based costing) Deluxe Moderate Economy