The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $60 per machine hour. The cost accountant for the Finishing Department has gathered the following data:

Activity	Cost Drivers	Amount
Material handling	Tons of material handled	$	80
Machine setups	Number of production runs		4,050
Utilities	Machine hours		20
Quality control	Number of inspections		400

During April, Mega purchased and used $120,000 of direct materials at $15 per ton. There were 8 production runs using a total of 13,000 machine hours in April. The manager of the Finishing Department needed 12 inspections. Actual overhead costs totaled $895,000 for the month.

How much overhead costs were applied to the Work-in-Process Inventory during April using activity-based costing?

Multiple Choice

• $780,000.

• $792,200.

• $937,200.

• $895,000.