An engineering firm operates a job costing system.
Production overhead is absorbed at the rate of $8.50 per machine hour. In order to allow for non-production overhead costs and profit, a mark-up of 60 per cent of prime cost is added to the production cost when preparing price estimates.
The estimated requirements of job number 808 are as follows:
Direct materials..................$10,650
Direct labour.........................$3,260
Machine hours..........................140
The estimated price notified to the customer for job number 808 will be:

(a) $22,256
(b) $22,851

(c) $23,446
(d) $24,160