Chris has a custom curtain and chair cover shop. The job-costing system was designed using an activity-based approach. There are two direct-cost categories (direct materials and direct labor) and three indirect cost pools. These three cost pools represent three activity areas of work at the shop.

Activity Area Cost Driver used for Allocation Cost-Allocation Rate Materials handling Number of pieces in the pattern $ 2.00 per piece Stitching Number of pieces in the pattern $25.00 per piece Assembly/Installation Direct labor hours $15.00 per hour In October Chris made and installed five sets of curtains and chair covers for clients. A set includes curtains for two windows and coverings for three chairs. The direct labor rate is $20.00 per hour. Cost data for curtains and covers is as follows: Units Produced Direct Material Costs per unit Number of Pieces per unit Direct Labor Hours per unit Curtains Chair coverings 10 15 $200 $225 1 6 2 6 12. The cost for a set of curtains and chair coverings would be a. $1,253 b. $2,085 c. $2,385 d. $5,375 e. None of the above 13. The indirect costs for the shop in October were a. $4,350 b. $4,900 c. $5,375 d. $11,925 e. None of the above