Question: X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the
X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the activities that are used in the ABC system:
| Activity | Budgeted cost | Cost driver |
| Assembly | $99,000 | 99,900 parts |
| Packaging | $59,400 | 11,700 finished units |
| Purchasing | $39,600 | 4,000 purchase orders |
In May of 2020, 709 units of Product C were finished, requiring $18,300 of direct materials, 6,000 direct labor hours, 1,107 parts, and 30 purchase orders. How much of the three activity costs was allocated to Product C [round overhead rate(s) to two decimal places]?
| A: $1,637 | B: $2,046 | C: $2,557 | D: $3,197 | E: $ |
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