BlendIn, Inc. manufactures covers for blenders and toaster ovens. Because its product lines are similar, BlendIn can produce most styles in any of its four factories with minimal setup time. In one of its factories, it has incurred indirect labor cost of $125,000, depreciation of $40,000 for corporate computers, and factory rent and utilities of $143,000. BlendIn uses GAAP-based costing. Based on the amounts above, how much should BlendIn allocate to product cost for blender covers? Assume that blender covers account for 55% of production.
A. $68,750
B. $147,400
C. $169,400
D. $82,200
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