ssume a service company has implemented an activity-based costing system with five activities as shown below:

Activity Cost Pool (Activity Measure)	Total Cost			Total Activity
Customer deliveries (Number of deliveries)	$	400,000		8,000	deliveries
Manual order processing (Number of manual orders)	$	280,000		10,000	manual orders
Electronic order processing (Number of electronic orders)	$	150,000		15,000	electronic orders
Line item picking (Number of line items picked)	$	450,000		375,000	line items
Other organization-sustaining costs (None)	$	300,000

The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows:

	Activity
Activity Measure	Hospital A	Hospital B
Number of deliveries	10	25
Number of manual orders	0	34
Number of electronic orders	15	0
Number of line items picked	120	250

How much cost would be assigned from the Manual Order Processing activity to Hospital B?

Multiple Choice

• $280,000

• $280,952

• $952

• $2,800