Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:

Cost Pools	Budgeted Cost			Cost Driver	Cost Driver Level
Setup	$	220,000		Number of setups	1,100
Ordering		110,000		Number of orders	5,500
Maintenance		275,000		Machine hours	27,500
Power		55,000		Kilowatt hours	55,000

Total direct labor hours budgeted = 11,000 hours.

The following data applies to Product X, one of the products completed during the year.

Direct materials	$	5,500
Direct labor	$	6,600
Units completed		550
Direct labor hours		220
Number of setups		22
Number of orders		44
Machine hours		275
Kilowatt hours		550

If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:

Multiple Choice

• $8,520.

• $8,580.

• $11,000.

• $13,200.

• $9,580.