7 A company produces numerous blends of coffee, two of which are known as the French Blend and the Italian Blend. The company's ABC system divides its total manufacturing overhead of $1,990,000 into four activity cost pools as shown below. Activity Purchasing Activity Measure Purchase orders Number of setups Materials handling Quality control Number of batches Roasting Roasting hours Data regarding production of the French and Italian blends is as follows: Expected sales Batch size Setups Purchase order size Roasting time per 100 pounds French Blend 100,000 pounds 10,000 pounds 3 per batch 20,000 pounds 0.5 hours Expected Activity 1,500 orders 1,800 setups 600 batches 95,000 hours Italian Blend 6,000 pounds 1,250 pounds 3 per batch 100 pounds 0.5 hours Estimated Cost $ 337,500 $ 540,000 $ 210,000 $902,500 Assume the company uses activity-based costing. How much overhead cost would be assigned from the Purchasing activity to the Italian Blend based on its expected sales?

A company produces numerous blends of colfee, wo of which afe known as the French Biend and the ltalian Biend. The company's ABC system divides is total manufacturing overhead of $1,990,000 into four activity cost pools as shown below. Data regarding production of the French and ralian blends is as follows: Assume the company uses activity-based costing. How much overhead cost would be assigned from the Purchasing activity to the ltalian Blend based on is expected sales