Softy, Inc. manufactures teddy bears and dolls. Currently, Softy makes 2,000 teddy bears each month. Each teddy bear uses $2.00 in direct materials and $0.50 in direct labor. Softy uses two activities in manufacturing the teddy bears: Sewing and Processing. The total cost associated with Sewing (for both bears and dolls) is $15,000 a month, allocated on the basis of direct labor hours. The total cost associated with Processing is $10,000 a month, allocated on the basis of batches. Usage of the activity drivers are as follows: What is the total manufacturing cost for one teddy bear? A. $2.50 B. $4.50 C. $7.00 D. $25,002.50