Camarillo Company uses a volume-based costing system that applies overhead cost based on machine hours at $15 per machine hour.

The Company is considering adopting an activity-based costing system with the following data:

Activity	Cost Driver	Rate
Materials handling	Pounds of material	$1.20
Lathe work	Number of parts	0.80
Milling	Number of machine hours	6.00
Grinding	Number of turns	0.10
Testing	Number of units tested	9

The two jobs processed in the month of May had the following characteristics:

	Job A	Job B
Direct material	$12,000	$60,000
Direct labor	$4,000	$12,000
Pounds of material	800	1,600
Number of parts	300	1,500
Number of turns	10,000	30,000
Number of machine hours	240	800
Number of units in each job	40	160	All units tested

Q. The difference in total cost between ABC and the volume-based costing system for Job A is:

a)$400

b)$360

c)$500

d)$760