Samson Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were computed: $400 per purchase order $24 per machine hour, Process 1 $30 per machine hour, Process 2 $80 per engineering hour Two products are produced by Special Products: L and M. The plant has two manufacturing processes, Process 1 and Process 2. Other processes include engineering, product handling, and procurement. Product L goes through Process 1 while Product M goes through Process 2. The product relational table for Special Products is as follows: Product L ActivityDriver # Name Activity Usage 1 Units 200,000 2 Purchase Orders 250 3 Machine Hours 80,000 4 Engineering Hours 1,250 Product M Activity Driver # Name Activity Usage 1 Units 25,000 2 Purchase Orders 125 3 Machine Hours 10,000 4 Engineering Hours 1,500

How much machine overhead cost will be assigned to Product M using Process 2? a.$2,400,000 b.$300,000 c.$1,920,000 d.$240,000