Bingo holdings has overheads of 1,200,00 per year. It uses activity based costing and has estimated the following cost pool and driver information for the year:

Cost pool Cost Driver

Purchasing: 300,000 5,000 purchase orders

Material issues: 400,000 10,000 stock issues

Scheduling: 300,000 10,000 production orders

Delivery: 200,000 5,000 deliveries

A customer has ordered a customer-made product that will require 5 purchase orders, 6 material issues, 2 production orders and 4 deliveries. The overhead to be allocated to the product is:

a. 840$

b. 760$

c. 680$

d. 40$