Overhead analysis per year Set-up costs Cost driver rates 15 000 111.11 per set-up Customer invoicing costs 5 000 1.02 per invoice Material handling costs 20 000 363.64 per batch Inventory Costs 25 000 378.79 per week Other overheads 32 000 0.37 per direct labour hour A B 8 250 units Annual sales volume Sales price per unit Batch size Direct labor time per unit Direct labor rate per hour Direct material cost per unit 5 000 units 205 200 units 150 275 units 5 hours 7 1/2 hours 10 12 25 20 Number of set-ups per batch 3 2 Number of invoices per month 150 260 Number of weeks spent in inventory per 2 3.5 month