Dandenong Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost Pool Overhead Costs Cost Driver Activity level

Supervision of direct labour $320 000 Direct labour-hours 800 000

Machine maintenance $120 000 Machine-hours 960 000

Facility rent $200 000 Square metres of area 100 000

Total overhead costs $640 000

The accounting records show the Leongatha job consumed the following resources:

Cost Driver Actual Level

Direct labour-hours 300

Machine-hours 2400

Square metres of area 75

Using direct labour-hours as the only overhead cost driver, what is the amount of overhead costs allocated to the Leongatha job?

a) $120

b) $125

c) $240

d) $160