Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:

Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine setups 15 45 $ 10,800 Assembly parts 3,000 3,000 144,600 Packaging pieces 500 400 55,350 Machine hour per unit 4 3 Production volume 750 1,500