Question $3(17\mathrm{.}5$ marks$)$

Orleans Company has identified the following overhead activities costs and activity drivers for the coming year:

$\backslash$table$[[,,],[$Activity$,\backslash$table$[[$Expected$],[$cost$]],$Activity Driver,$\backslash$table$[[$Activity$],[$Capacity$]]],[$Setting up$,$$$120,000,$Number of setups,$600],[$Inspecting$,$$$90,000,$Inspection hours,$9,000],[$Grinding$,$$$180,000,$Machine hours,$36,000],[$Receiving$,?,$Number of parts,$100,000]]$

The company produces several different subassemblies used by other manufacturers. Information on separate batches for two of these subassemblies are as follows:

$\backslash$table$[[,,],[,$Batch A$,$Batch B$],[$Direct Materials,$$1,700,$$$1,900$