Sarah Is an Accountant for Flowy, Inc

Multiple Choice

Sarah is an accountant for Flowy, Inc., a small factory that manufactures disposable hospital gowns and slippers. Previously, Flowy had been utilizing a traditional costing system to account for their budgeted Manufacturing Overhead (MOH) costs. After a few years, Sarah recommended that they opt for Activity-Based Costing (ABC) as it would afford them the opportunity to better account for their costs. She determined that Flowy had three key activities to use for MOH budgeted costs: Material sorting, garment inspection, and materials management wages. She has collected the following data:
Material sorting: $37,888 (3,678 sorting hours)
Garment Inspection: $55,986 (4,770 inspection hours)
Materials Management wages: $18,900 (13,000 management hours)
If slippers used 2,862 inspection hours, what amount of the garment inspection MOH costs will be allocated to the gowns? (Do not round intermediate calculation.)

A) $22,394.40
B) $29,043.31
C) $33,599.88
D) $55,986.00