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Question(s) / Instruction(s):

A custom yacht-building company uses activity-based pricing. The companyƒÂa€sÂa€zÂs activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Design 2,500,000 # of designs 100 designs Production 4,000,000 labor hours 125,000 labor hours Customer Service 80,000 # of customers 20 customers One particular customer requested 2 different designs which led to the production of one yacht which took 2,400 labor hours to complete. What additional costs will be charged to this customer? a. $105,800 b. $255,000 c. $76,800 d. $130,800

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