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Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments:

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Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marker (which engages in selling and admin activity only). The ABC system includes in unit product costs all costs easily associated with units. In addition, in the ABC system, there are four major indirect activities: Machine Setups, Special Processing. Factory Supervision, and Customer Relation. The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHS) are given below for one unit of the product, as well as the total units produced and sold. DLHS Product Basic Pro Price $180 $320 DM $50 $80 Hourly Wage-DL $10 Shipping Cost $2 Units 6,000 4,000 $12 $4 The company collected the data for ABC as follows: Activity Cost Pool Activity Measure Estimated OH cost Activity measures used Basic Pro 60120 6,000 10.000 Machine Setup Special Processing Factory Supervision Customer Relation (10 customers) # of setups Machine hours DLH of customers 1313 13333 472,500 360,000 224.000 S240,000 The company has two major customers (A and B), who buy their products in the amounts in the table below. Customer Basic Pro 800 1200 2.000 1,000 unit unit How much is the ABC customer margin of customer B? (Choose the closest amount)

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