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

Overhead Item Cost Driver Budgeted Cost Budgeted Activity Level

Machine setup Number of setups $20,000 200

Inspection Number of inspections $130,0006,500

Material handling Number of materials moves $80,000 8,000

Engineering Engineering hours $50,0001,000 Budgeted direct labor cost was $100,000, and budgeted direct material cost was $280,000. The following information was collected on three jobs that were completed during the year:

Job 101 Job 102 Job 103

Direct materials $5,000 $12,000 $8,000

Direct labor $2,000 $2,000 $4,000

Units completed 100 50 200

Number of setups 1 2 4

Number of inspections 20 10 30

Number of material moves30 10 50

Engineering hours 10 5010 If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101?

$1,300 $2,000 $5,000 $5,600