- -- Activity Materials Assembling Packaging Est. Indirect Activity Costs $65,000 $155,000 $80,000 Allocation base Material moves Machine hours # of finished units Cost allocation rate $5.00/move $6.00/machine hour $1.50/finished unit The following units were produced in December with the following information. The company incurs no direct labor costs. Part # # Produced Materials Costs # Moves Machine Hrs. Part 001 1.450 $4,500 400 200 Part 002 5,500 $4,000 500 300 Part 003 3,850 $9,000 2,700 1,650 Total manufacturing costs for Part 001 is O A. $7,700 O B. $5,375 O C. $9,875 OD. $3,200