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A company has identified the following overhead costs and cost drivers for the coming year:

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January 5th, 2018

A company has identified the following overhead costs and cost drivers for the coming year:BudgetedOverhead ItemCost DriverBudgeted CostActivity LevelMachine setupNumber of setups$ 32,500250InspectionNumber of inspections142,5004,750Material handlingNumber of material moves110,5006,500EngineeringEngineering hours19,500650Budgeted direct labor cost was $152,500 and budgeted direct material cost was $425,000. The following information was collected on three jobs that were completed during the year:Job 101Job 102Job 103Direct materials$ 6,000$ 11,000$ 7,000Direct labor$ 2,600$ 2,600$ 5,200Units completed5025150Number of setups122Number of inspections10515Number of material moves15540Engineering hours5258If the company uses traditional costing and allocates overhead using direct labor cost, what is the cost of each unit of Job 102?$833.80.$674.40.$1,041.80.$593.80.

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