Use the following data for questions 1 - 6: The Smith Company makes three different devices: Model A, Model B, and Model C. The company has been using a traditional costing system with one indirect cost pool based on direct labor hours; however, they are considering changing to an activity-based costing (ABC) system in 2021. The company has analyzed its current indirect cost pool and come up with the following activity cost pools for use in an ABC system in 2021: Activity cost pool Cost-allocation base Indirect costs in cost pool Product design Number of design changes $180,000 Material handling Number of orders $424,000 Supervision of direct labor Direct labor hours $584,000 Machine maintenance Machine hours $612,000 Data for each product in 2021 is as follows: Model A Model B Model C Direct materials cost per unit $6 per unit $8 per unit $14 per unit Direct labor hours (DLH) per unit 0.5 DLH per unit 4 DLH per unit 6 DLH per unit Direct labor cost per DLH $15 per DLH $15 per DLH $15 per DLH Units produced 80,000 units 50,000 units 22,500 units Number of design changes 5 design changes 15 design changes 30 design changes Number of orders 10,800 orders 6,400 orders 2,800 orders Machine hours (MH) per unit 0.8 MH per unit 1.3 MH per unit 2.6 MH per unit