Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $156,000, while the cost of Inspection is $40,500. Standard uses 20% of total machine hours and 70% of total batches. What is the total activity cost assigned to Luxury?

$59,550

$12,150

$136,950

$124,800