Franklin Manufacturing manufactures two models of windows, bay windows and casement windows. Franklin uses an activity-based costing system. The following information about the activities used to produce the company's products has been provided. CategoryEstimated Cost Cost Driver Bay Windows CasementUnit-level$125,000 Labor hours 750 500Batch-level$75,000 Inspections 30 20Product-level$35,000 Storage Space 3,500 sq feet 2,100 sq feetFacility-level$165,000 Machine hours 9,000 6,000 The amount of batch-level cost that should be allocated to the bay windows equals:
A. $30,000.
B. $7,500.
C. $75,000.
D. $45,000.
Answer: D
Business
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