Snow White produces two apple baked products (Apple Pies and Applesauce) using two different activities: Baking, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Baking is $140 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows:

	Apple Pies	Applesauce	Total
Machine hours	1,100	3,500	4,600
Number of batches	53	21	74

What is the amount of Inspection cost assigned to Applesauce?

Multiple Choice

• $26,500

• $154,000

• $10,500

• $37,000