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	98,400	hours	$ 902,500

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

	French Blend		Italian Blend
Expected sales	100,000	pounds	5,000	pounds
Batch size	20,000	pounds	1,250	pounds
Setups	3	per batch	3	per batch
Purchase order size	20,000	pounds	500	pounds
Roasting time per 100 pounds	0.9	hours	0.5	hours

Assume the company uses a plantwide predetermined overhead rate based on roasting hours. The amount of manufacturing overhead assigned to the French Blend for its expected sales would be closest to:

Garrison 17e Rechecks 2021-10-23

Multiple Choice

• $2,460.

• $2.46.

• $18,135.

• $18.14.