Answer the following question using the information below: (Show all work and steps)

Wallace Printing has contracts to complete weekly supplements required by forty-six customers. For the year 2016, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 10 million pages.

For 2016, Wallace Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design charges, setups, and inspections are the primary manufacturing overhead cost drivers.

The following information was gathered during the analysis:

Cost pool	Manufacturing overhead costs	Activity level
Design charges	$60000	200 design changes
Setups	320000	4000 setups
Inspections	40000	16000 inspections
Total manufacturing overhead costs	$420,000

During 2016, two customers, Wayward Insurance and Hapless Systems, are expected to use the following printing services:

Activity	Wayward Insurance	Hapless Systems
Pages	60,000	76,000
Design changes	10	2
Setups	20	10
Inspections	30	38

Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Hapless Systems during 2016?

a) $3,113.75

b) $1,495.00

c) $2,068.00

d) $3,412.50