Traditions Home Accessories Company Manufactures Pillows Using an Activity-Based Costing

Traditions Home Accessories Company manufactures pillows using an activity-based costing system to allocate all manufacturing conversion costs.The following information is provided for the month of June: $$\begin{array} { | l | r | l | r | } \hline \text { Activity } & \begin{array} { l } \text { Estimated Indirect } \\\text { Activity Costs }\end{array} & \text { Allocation Base } & \begin{array} { l } \text { Estimated Quantity of } \\\text { Allocation Buse }\end{array} \\\hline \text { Materials handling } & \$ 3,000 & \text { Number of parts } & \text { 6,000 parts } \\\hline \text { Assembling } & \$ 7,200 & \text { Number of parts } & 6,000 \text { parts } \\\hline \text { Packaging } & \$ 4,000 & \text { Number of pillows } & 2,000 \text { pillows } \\\hline\end{array}$$ Each pillow consists of 3 parts; the total direct materials cost per pillow is $8.00.
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What is the total cost of packaging per pillow?

A) $ 2.00
B) $10.00
C) $ 1.50
D) $ 3.60