Krypton Ltd.s budgeted information relating to the manufacture of two of its products is presented below:

			# of times driver used
Activity	Cost	Driver	Product A	Product B
Setup	$68048	# of batches	30	10
Engineering	$121471	# of engineering hours	6849	10742
Machine Maintenance	$91358	# of machine hours	7000	12000
Direct labour cost	$11/hour		$347283	$535269
Direct materials			$127464	$92764

What would be the pre-determined overhead rate under a traditional costing model, with overhead allocated based on direct labour hours?

Select one:

a. $3.50

b. $15.97

c. $0.32

d. $1.28

Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9:

Activity	Budgeted Cost	Cost Base	Cost Base Volume
Assembly	$878839	# of DL hours	37235
Inspection	$658700	# of units	20728
Shipping	$328833	# of batches	199

Budgeted data relating to the production of M1 for 20x9 is given below:

	Number of units	1500
	Units per batch	79
	Direct labour hours (@ $18 per hour)	19032 hours
	Direct materials (@ $12.11 per kg.)	896 kg.

What is the total cost of producing M1 in 20x9?

Select one:

a. $539096

b. $881672

c. $528245

d. $980838