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BNC. uses a job-order costing system. The company applies all of its overhead costs to jobs using a predetermined overhead rate based on direct labor-hours.

BNC. uses a job-order costing system. The company applies all of its overhead costs to jobs using a predetermined overhead rate based on direct labor-hours. At the beginning of the year, it made the following estimates:

Direct labor-hours required to support estimated output 26,000
Fixed overhead cost $ 325,000
Variable overhead cost per direct labor-hour $ 1.00

During the year, a customer brought in her car for repairs. The following information was available with respect to the car's repairs:

Direct materials $ 610
Direct labor cost $ 120
Direct labor-hours used 10

If BNC sets its selling prices by adding a markup percentage of 60% of its total job cost, then how much would Bundy have charged this customer for her car's repairs?

a. $1,384

b. $2,160

c. $865

d. $730

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