A company produces numerous blends of coffee, two of which are known as the French Blend and the Italian Blend. The companys ABC system divides its total manufacturing overhead of $1,982,500 into four activity cost pools as shown below.

Activity	Activity Measure	Expected Activity		Estimated Cost
Purchasing	Purchase orders	1,500	orders	$ 330,000
Materials handling	Number of setups	1,800	setups	$ 540,000
Quality control	Number of batches	600	batches	$ 210,000
Roasting	Roasting hours	95,000	hours	$ 902,500

Data regarding production of the French and Italian blends is as follows:

	French Blend		Italian Blend
Expected sales	100,000	pounds	6,000	pounds
Batch size	10,000	pounds	1,250	pounds
Setups	3	per batch	3	per batch
Purchase order size	20,000	pounds	100	pounds
Roasting time per 100 pounds	0.5	hours	0.5	hours

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?

Multiple Choice

$110,000

$1,800

$1,100

$13,200