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Nina Inc. has identified the activities that drive their overhead costs and has assigned costs as follows: Activities, Costs and Drivers Activity Overhead Cost Driver

Nina Inc. has identified the activities that drive their overhead costs and has assigned costs as follows:

Activities, Costs and Drivers
Activity Overhead Cost Driver Driver Quantity
Changeover $500,000 Number of Batches 800
Machining $279,000 Machine Hours 6,000
Welding $180,300 Welding Hours 3,000
Providing space $32,000 Number of Units 5,000

Nina makes two products, Model 5150 and Model 1492. Below are the number of drivers expected to be used to make each product in the current period.

Activity Driver Usage by Product
Activity Driver Model 5150 Model 1492
Units 2,000 3,000
Batches 300 500
Machine Hours 3,500 2,500
Welding Hours 1,000 2,000

How much overhead will Nina apply to Model 5150 related to changeovers?

Group of answer choices

187,500

312,500

1,250,000

116,250

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