Holly LLC produces kayaks and has recently adopted activity-based costing. Information on the following topics was gathered concerning the purchasing department: writing purchase orders for plywood, ordering key parts, number of plywood purchase orders written, number of key parts orders placed. The total overhead costs for purchases is $600,000 of which $120,000 is associated with ordering key parts. The cost used for overhead application for the activity of ordering key parts is

Select one:

a. $600,000

b. $120,000

c. Neither A nor B