EXERCISE

Machine setups - $130 per setupSoldering - $2.25 per joint

Quality control - $40 per inspectionShipments - $220 per shipment

Purchase orders - $75 per orderMachine related - $8 per machine hour

Product X-20 Product Y-30 Expected Amount Expected Amount of OH Activity of OH Activity Machine setups 100 setups $130,000 600 setups 78,000 Quality control 4,000 inspect 160,000 5,000 inspections 200,000 Purchase orders 840 orders 63,000 360 orders 27,000 Soldering 60,000 joints 135,000 140,000 joints 315,000 Shipments 400 shipments 88,000 200 shipments 44,000 Machine related 30,000 mach 240,000 40,000 mach hrs. 320,000 hrs Total overhead costs $816,000 984,000