Xuantong Furniture Pty Ltd plans to manufacture two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing system. Given below are each activity, its cost and its related activity driver. Activity Material setups Material handling Cutting Assembly Finishing Cost $150,000 180,000 620,000 550,000 300,000 Activity Driver Number of setups Number of parts Number of parts Direct labour hours Number of units The level of activity for the year is: Lounge Units to be produced 10,000 Number of setups 30 Number of parts per unit 10 Direct labour hours per unit 7 Patio 5,000 20 6 4 Under an activity-based costing system, what is Xuantong's total cost of lounge chairs for the year? O a. $1,670,000 Ob. None of the answers Oc. $ 670,000 Od. $ 910,000 $1,140,000 O e