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A company manufactures and sells two styles of class rings: standard and deluxe. The company utilizes an activity-based costing system.

The company compiles the following information relating to the budgeted production activity for the upcoming month:

Product

Units

Lbs. of Material

Standard ring

32,000

1,200

Deluxe ring

18,000

700

Total

50,000

1,900

 

Activity

Overhead Costs

Identification Cost Driver

Materials handling

$22,800

bs. Of materials

What amount of materials handling overhead cost should be allocated to the deluxe ring?

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