Rydingsward, Inc -Refer to the Figure

Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed:
$$\begin{array} { l l } \text { Activit } & \text { Cost Formula } \\\hline \text { Maintenance } & \$ 15,000 + \$ 4 \text { per machine hour } \\\text { Machiring } & \$ 35,000 + \$ 1 \text { per machine hour } \\\text { Inspection } & \$ 60,000 + \$ 750 \text { per batch } \\\text { Setups } & \$ 1,000 \text { per batch } \\\text { Purchasing } & \$ 50,000 + \$ 10 \text { per purchase order }\end{array}$$
-Refer to the figure.What are the budgeted setup costs if there was production of 50,000 reflectors that will require 8,000 machine hours,25 batches,and 15,000 purchase orders?

A) $1,000
B) $25,000
C) $8,000,000
D) $15,000,000

Correct Answer:

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