A company produces numerous blends of coffee, two of which are known as the French Blend and the Italian Blend. The company$$s ABC system divides its total manufacturing overhead of $$1,982,500$ 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 $5,000$ pounds

Batch size $10,000$ pounds $1,250$ pounds

Setups $3$ per batch $3$ per batch

Purchase order size $20,000$ pounds $500$ pounds

Roasting time per $100$ pounds $0\mathrm{.}5$ hours $0\mathrm{.}5$ hours

Assume the company uses activity$-$based absorption costing. How much total overhead cost would be assigned to the French Blend based on its expected sales?

Multiple Choice

$$16,850$

$$17,150$

$$17,550$

$$18,350$