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The Pinewood Furniture Company 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 300 000 250 000 700 000 600 000 450 000 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 Units to be produced Number of setups Number of parts per unit Direct labour hours per unit Lounge 10 000 60 10 Patio 5000 60 Under an activity-based costing system, what is the total cost of lounge chairs for the year? A. $1 710 000 B. $1 410 000 C. $890 000 D. $1 150 000