Formosa Steel Products Makes Steel Building Materials for Export, and Uses

Formosa Steel Products makes steel building materials for export, and uses an activity-based costing system to account for the indirect manufacturing costs of its various products. Indirect costs for the whole factory are broken down into three activities-casting, materials handling, and milling. The cost driver for casting is machine hours; the cost driver for material handling is kilograms, and the cost driver for milling is direct labor hours. Activity costs and volumes for the year were estimated as follows:
$$\begin{array} { | l | r | r | r | } \hline { \text { Activity } } & { \text { Cost } } &{ \text { Volume } } & \\\hline \text { Casting } & \$ 2,000,000 & 800,000.00 & \text { Machine hours } \\\hline \text { Material Handling } & \$ 400,000 & 500,000.00 & \text { Kilograms } \\\hline \text { Milling } & \$ 1,120,000 & 140,000.00 & \text { Direct labor hours } \\\hline\end{array}$$
One product is steel reinforcement rods, sold by the metric ton. Engineering reports show that one metric ton of steel reinforcement rods requires $100 of direct materials cost plus $50 of direct labor cost. Producing one metric ton of steel rods also requires 24 machine hours for casting, weighs 1,000 kilograms, and requires 15 direct labor hours.
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What is the full manufacturing cost for one metric ton of steel reinforcement rods? (Please round to the nearest whole dollar.)

A) $1,130
B) $980
C) $1,030
D) $975