Problem # 3 Direct materials 325,400 Materials handling 35,145 Assembly 58,020 Setup 13,400 Product Testing 3,500 Overhead Output Direct Labor Hours Setups 15,860 41,500 units 3,600 420 Product tests 70,000 Each unit requires two machine hours Materials handling based on direct material cost Product testing based on number of tests Overhead based on machine hours Assembly based on direct labor hours Setups based on the number of setups Job 153: Completed Direct Materials Direct labor hours Setups Tests 1,850 12,400 units 83 6 2,584