Hoover Company produces healthcare equipment Alpha and Beta. The following information for the year:

Under ABC costing, Hoover Company will assign the cutting cost by:

a) $ 4,050,000

b) $ 4,860,000

c) $ 4,657,000

d) $ 8,639,460

e) No correct answer

\begin{tabular}{|l|rr|rr|l|} & \multicolumn{2}{|c|}{ Budgeted } & \multicolumn{2}{|c|}{ Actual } & Cost Driver \\ \hline Designing & $ & 450,000 & $ & 460,000 & designer hours \\ \hline Cutting & $ & 4,000,000 & $ & 4,098,600 & machine hours \\ \hline Colouring & $ & 1,500,000 & $ & 1,198,800 & direct labor hours \\ \hline Packing & $ & 400,000 & $ & 500,000 & finished units \\ \hline Overhead cost & $ & 6,350,000 & $ & 6,257,400 & \\ \cline { 1 - 4 } Designer hours & 15,000 hours & 16,000 hours & \\ \cline { 1 - 4 } Machine hours & 160,000 hours & 162,000 hours & \\ \cline { 1 - 4 } Direct labor hours & 75,000 hours & 74,000 hours & \\ \hline Finished units & 25,000 hours & 25,000 hours & \\ \hline \end{tabular}