Sandra's Sandwich Boards Inc. (Sandra's) creates and prints sandwich boards for advertising outside restaurants. The sales manager wants to assess the profitability of Larry's Lunch, a long-time customer of Sandra's. During the second quarter, Larry's Lunch ordered sandwich boards from Sandra's, and Sandra's incurred the following revenue, activities and costs related to these orders

Selling price per board $425

Number of boards sold 8

Number of orders 3

Number of shipments 4

Direct materials per unit $ 95

Direct labour hours per unit 3.5

Direct labour rate per hour $ 24

The sales manager also wants to assign a portion of the company's overhead costs of $170,000 for the quarter and has set up the following activity cost pools in order to allocate the costs:

Activity cost pool Activity measure Total Activity (for the quarter)

Order processing Number of orders 500 orders

Customer support Number of customers 125 customers

Shipping Number of shipments 100 shipments

Other Not allocated to customers N/A

Per cent allocation

Overhead Cost Order Processing Customer Support Shipping Other Total

Wages and salaries $75,000 50% 30% 10% 10% 100%

Other overhead costs $95,000 35% 20% 5% 40% 100%

What is the profit associated with Larry's Lunch?

a) $ 722

b) $1,146

c) $1,968

d) $2,154