Determine the amount assigned to a concrete seahorse

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Question - Sand Castle Manufacturing produces concrete yard art. 2,000 concrete seahorses were produced in a recent production run. The run required 1,000 machine hours, and also required five "set-ups" of mixing equipment. Final inspection required 50 hours of inspection activity. Estimated overhead is estimated at $30 per machine hour, plus $2,750 per "set-up" and $25 per inspection hour. Direct materials and direct labor total $75 per seahorse. Apply activity-based costing and determine the amount assigned to a concrete seahorse.

A. $86.8

B. $97.5

C. $75.6

D. $100

E. none of the above

Reference no: EM132976597

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