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MegaMags Company uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools follow:

MegaMags Company uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools follow:

Activity Estimated Expected Activity

Cost Pool Cost Weekly Monthly Total

Activity 1 $15,675 800 400 1,200

Activity 2 $11,900 500 200 700

Activity 3 $27,600 800 300 1,100

Total costs which would be charged to monthly magazines would be:

a. $10,300.

b. $6,900.

c. $55,175.

d. $16,151.

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