Assume That the Oregon Ice Cream Company Is Considering the Costs

Multiple Choice

Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines - ice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.
$$\begin{array}{l}\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Cost Driver } \\\hline \text { Extrusion Costs } & \$ 637,500 & \text { Number batches made } \\\hline \text { Packaging Costs } & \$ 44,000 & \text { Number of units made } \\\hline\end{array}\\\\\begin{array} { | l | c | c | } \hline & \text { Ice Cream Sandwiches } & \text { Dessert Bars } \\\hline \text { Production volume } & 350,000 \text { units } & 200,000 \text { units } \\\hline \text { Batches made } & 400 \text { batches } & 350 \text { batches } \\\hline\end{array}\end{array}$$
-Refer to the data above. How much overhead cost will be assigned to the desert bar product line using activity-based costing (ABC) ?

A) 340,750
B) $247,818
C) $16,000
D) $297,500
E) $313,500