6.

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

			Budgeted
Overhead Item	Cost Driver	Budgeted Cost	Activity Level
Machine setup	Number of setups	$ 32,500	250
Inspection	Number of inspections	142,500	4,750
Material handling	Number of material moves	110,500	6,500
Engineering	Engineering hours	19,500	650

Budgeted 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 101		Job 102		Job 103
Direct materials	$ 6,000		$ 11,000		$ 7,000
Direct labor	$ 2,600		$ 2,600		$ 5,200
Units completed	50		25		150
Number of setups	1		2		2
Number of inspections	10		5		15
Number of material moves	15		5		40
Engineering hours	5		25		8

If 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.