Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: Activities Cost driver Allocation Rate Material handling Number of parts $7 per part Labor hours $20 per hour Time at inspection station Assembly Inspection $10 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $600 per labor hour. What are the indirect manufacturing costs per remote control assuming an activity-based-costing method is used and a batch of 100 remote controls are produced? The batch requires 470 parts, 9 direct manufacturing labor hours, and 18 minutes of inspection time. : a. $6.00 per remote control b. $36.50 per remote control c. $3,650.00 per remote control d. $37.00 per remote control