Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities.

During the past year, it has incurred:

Cost

Description$725,000

Product development costs$475,000

Materials handling costs$1,250,000

Production line labor costs$450,000

Production setup costs$250,000

Power costs (for cooling beer and running equipment)$875,000

Manufacturing facility management costs

Using the manufacturing cost hierarchy, what is the total cost that would be classified asproduct-levelactivity costs?