Franklin Manufacturing manufactures two models of windows,

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.

Category Estimated Cost Cost Driver Bay Windows Casement

Unit Level $125,000 Labor Hours 750

500

Batch level $75,000 Inspections 30

20

Product level $35,000 Storage space 3,000 sq ft 2,100 sq ft.

Facility level 165,000 machine hours 9,000 6,000

The amount of batch-level cost that should be allocated to the casement windows equals:

$30,000

$45,000

$75,000

$7,500