The doubletree division of Mcdowell company manufactures many high-volume products and many low-volum products. the division's existing costing system allocates all machine-related overhead based on machine hours and all the remaining overhead based on direct labor hours. However, a recent study determined that machine setup costs and material handling costs are primarily related to the number of setup performed, and other materials-related costs are primarily related to the number of purchase ordes issued. The division does not keep significantmaterials inventories on hand. Selected information follows for the. Division's most recent year of operationa.