Stone Cold Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred:
$725,000 (product development costs)
$475,000 (materials handling costs)
$1,250,000 (production line labor costs)
$450,000 (production setup costs)
$250,000 (power costs (for cooling beer and running equipment))
$875,000 (manufacturing facility management costs)
Using the manufacturing cost hierarchy, what is the total cost that would be classified as product-level activity costs?