COTB MC Qu. 4-79 (Static) In its first year of operations... In its first year of operations a company produced and sold 70,000 units of Product A and 17,500 units of Product B. Additional information relating to the company's only two products is shown below: Product A Direct materials $ 436,300 $ 200,000 Direct labor Product B $ 251,700 Total $ 688,000 $ 104,000 $ 304,000 The company's direct labor wage rate is $20 per hour. It created an activity-based costing system that allocated all of its manufacturing overhead costs to three activities as follows: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Total manufacturing overhead cost Manufacturing Overhead $ 213,500 Product A 90,000 157,500 237,000 75 1 Activity Product B 62,500 300 1 Total 152,500 375 2 $ 608,000 According to the company's activity-based costing system, the total product cost assigned to Product A would be: Multiple Choice $922,300. $902,300. $912,300. $908,300