Hayden Co. produces two different products (Product A and Product B) using two different activities: Fabrication, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity drivers are used as follows:

Product A Product B Total

Machine hours 1,000 3,000 4,000

Number of batches 45 15 60

The activity rate for Fabrication is $57.50 per machine hour. What is the total cost of Machining?

$57,500

$230,000

$270,000

$175,500