Rocket Products Manufactures Three Types of Remote-Control Devices: Economy, Standard

Multiple Choice

Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe.The company, which uses activity-based costing, has identified five activities (and related cost drivers) .Each activity, its budgeted cost, and related cost driver is identified below. Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Deluxe product line is closest to:

A) $456,471.
B) $646,471.
C) $961,176.
D) $1,141,176.
E) None of the answers is correct.