Kratz Manufacturing Company Uses an Activity-Based Costing System

Multiple Choice

Kratz Manufacturing Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:
During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.
-What is the total manufacturing cost for the period?

A) $80,675
B) $10,625
C) $32,100
D) $17,250