Aimee Cosmetics Company Uses the Following Allocation Rates from Its

Multiple Choice

Aimee Cosmetics Company uses the following allocation rates from its activity-based costing system to assign overhead costs to products: $$\begin{array} { | l | l | } \hline \text { Activity } & \text { Allocation Rate } \\\hline \text { Purchasing raw materials } & \$ 40 \text { per purchase order } \\\hline \text { Setting up machines for production } & \$ 150 \text { per set-up } \\\hline \text { Inspecting finished products } & \$ 25 \text { per inspection } \\\hline\end{array}$$ Product A1 uses the following:
17 purchase orders
4 set-ups
12 inspections How much overhead cost would be assigned to Product A1?

A) $7,095
B) $215
C) $600
D) $1,580