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	90,000	62,500	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

According to the companys activity-based costing system, the total product cost assigned to Product A would be:

Multiple Choice

$922,300.

$902,300.

$912,300.

$908,300.