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Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost

Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.

Activity Cost Cost Driver
Material handling $ 230,000 Number of parts
Material insertion 2,480,000 Number of parts
Automated machinery 845,000 Machine hours
Finishing 175,000 Direct labor hours
Packaging 175,000 Orders shipped
Total $ 3,905,000

The following information pertains to the three product lines for next year:

Economy Standard Deluxe
Units to be produced 10,500 5,500 2,500
Orders to be shipped 1,050 550 250
Number of parts per unit 10 15 25
Machine hours per unit 1 3 5
Labor hours per unit 2 2 2

Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Deluxe product line is closest to:

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