In its first year of operations a company produced and sold 70,000 units of Product A and 17,500 units of Product B. Additional information relating to the companys only two products is shown below: Product A Product B Total Direct materials $ 436,300 $ 251,700 $ 688,000 Direct labor $ 200,000 $ 104,000 304,000 The companys direct labor wage rate is $20 per hour. It created an activity-based costing system that allocated all of its manufacturing overhead costs to three activities as follows: Activity Cost Pool (and Activity Measure) Manufacturing Overhead Activity Product A Product B Total Machining (machine-hours) $ 213,500 80,100 72,400 152,500 Setups (setup hours) 157,500 75 300 375 Product design (number of products) 237,000 1 1 2 Total manufacturing overhead cost $ 608,000 The companys activity-based costing system would allocate how much manufacturing overhead to Product A?

a. $264,140 b. $258,140 c. $260,140 d. $262,140