Beacon Hill, Corp

Multiple Choice

Beacon Hill, Corp. manufactures balloons that it then packages and sells throughout the country. Beacon Hill would like to have a better understanding of their overall budgets, and they have decided to implement the use of Activity-Based Costing (ABC) . They have decided upon four unique key activities which they would like to assign activity-based rates to the following Manufacturing Overhead (MOH) costs: quality inspection, $32,400 (2,400 inspection hours) ; maintenance, $16,858 (2,000 maintenance hours) ; moving and sorting, $12,444 (662 pounds of materials) ; and factory supervisor wages, $58,784 (4,788 supervisor hours) . Beacon Hill will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources:
Red balloons: 1,400 inspection hours, 1,450 maintenance hours, 412 pounds of materials, and 2,448 supervisor hours
Blue balloons: 1,000 inspection hours, 550 maintenance hours, 250 pounds of materials, 2,340 supervisor hours
How much of the Moving and Sorting MOH will be allocated to the blue balloons? (Do not round intermediate calculation.)

A) $12,440.00
B) $7,746.60
C) $4,699.40
D) $10,340.00