A manufacturing organisation uses an activity-based costing (ABC) system for indirect production overhead cost recovery. The table below shows the overhead recovery basis and values:

Activity: Total cost Cost driver: Cost driver: Activity cost:

Set - up costs 2,700 Set - ups 90 30

Quality control 36,000 Inspection events 1,800 20

Depreciation 17,600 Machine hours 2,200 8

Raw materials storage 22,500 Materials movements 4,500 5

Other costs 7,500 Labour hours 750 10

Total overhead costs: 86,300

A recent contract (Job A100) had prime costs of 1,300. Activity cost driver consumption was:

Set-ups 1

Inspection events 15

Machine hours 30

Materials movements 80

Labour hours 25

The total (full) production cost of Job A100, is what pick one answer only:

a. 1,220

b. 1,300

c. 2,520

d. 2,550