In its first year of operations a company produced and sold 71,300 units of Product A at a selling price of $33 per unit and 18,800 units of Product B at a selling price of $53 per unit. Additional information relating to the companys only two products is shown below:

	Product A	Product B	Total
Direct materials	$ 442,800	$ 254,300	$ 697,100
Direct labor	$ 213,000	$ 110,500	323,500
Manufacturing overhead			614,500
Cost of goods sold			$ 1,635,100

The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows:

Activity Cost Pool (and Activity Measure)	Manufacturing Overhead	Activity
Product A	Product B	Total
Machining (machine-hours)	$ 214,800	96,500	63,800	160,300
Setups (setup hours)	158,800	88	430	518
Product design (number of products)	121,300	1	1	2
Other (organization-sustaining costs)	119,600	NA	NA	NA
Total manufacturing overhead cost	$ 614,500

The companys ABC implementation team also concluded that $56,500 and $113,000 of the companys advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($413,000) was organization-sustaining in nature.

a.) 1,271,100

b.) 1,292,400

c.) 1,235,900

d.) 1,203,300