The Catchem Reel Company uses an activity-based costing system to account for its production of fishing equipment. In the case of fishing reels, each reel has $200 of direct materials, $75 of direct labor, includes 25 parts, and requires 9 hours of machine time in the production process. Information on costs, manufacturing activities, and cost drivers is listed below. (Note: cost per cost driver unit refers to cost per part, per hour, or per reel, respectively.)

Cost Per

Manufacturing Activity Cost Driver Cost Driver Unit

Material handling Number of parts $5.00

Polishing Machine hours (MH) 6.00

Assembling Number of parts 3.00

Testing Number of finished reels 10.00

What is the total cost to produce, polish, assemble, and test one reel?

• $299

• $605

• $310

• $275

• $545

• $539