Astrа Inc. mаnufаctures widgets and gadgets. Astra expect tо manufacture 300 widgets and 800 gadgets. Widgets require 5 direct labоr-hоurs per unit, and gadgets require 2 direct labor-hours (DLH) per unit. Astra currently applies overhead using traditional costing using direct labor hours as the cost driver. Total estimated overhead is $426,000. However, they are now considering switching to activity-based costing (ABC) with the following cost pools, activity measures and expected activity. Labor related cost pool with estimated overhead of $280,000 to be applied using DLHs. Order size cost pool with estimated overhead of $146,000 to be applied using machine hours (MHs). They expect to use 5,100 MHs for widgets and 3,900 MHs for gadgets. Which of the following statements concerning Gadgets is true? (Round intermediate calculations to 2 decimal places.)