Gain Custom Products uses two overhead resources machines and people. The following table displays the annual cost and capacity (in hours) of these resources.

Each hour of Forging activity uses 4 machine hours and 3 people hours. If product X44 uses 3 hours of Forging activity the total Forging activity cost assigned to product X44 will be:

a. $294.

b. $396

c. $423.

d. None of the above

Machine Annual Cost $4,800,000 Annual Capacity | 200,000 People $450,000 30,000