Create Space produces yoga mats and props. The company currently allocates manufacturing overhead to production at a rate of $5.00 per direct labor hour.

In order to gain a better understand of how its products consume overhead resources, the company is considering using activity based costing for internal planning and decision making purposes. Two activities have been identified as generating 80% of the total budgeted manufacturing overhead. Information related to the two activities is as follows:

Activity	Cost Pool	Cost Driver Activity Level
Machine Setup	$106,000	200 setups
Inspection	$59,000	500 inspection hours

The remaining overhead is attributable to general factory costs and will continue to be allocated based on direct labor hours.

One of the company's products, Restorative Cushion, requires 50 setups, 675 inspection hours, and 12,250 direct labor hours. What is the product's total cost distoration?

A.

$12,241

B.

$44,900

C.

$41,250

D.

$69,400

E.

$57,150