Grey Company Small Motor Repair uses normal costing and job-order costing. The companys direct materials consist of replacement parts for a variety of lawn and garden machines and its direct labor consists of the mechanics hourly wages. Greys overhead costs are applied based on direct labor hours.

At the beginning of the year, Grey developed a predetermined overhead rate of $20 per direct labor hour. At the end of the year, its records indicated that it has paid $343,980 for overhead and employed its mechanics for 8,190 direct labor hours.

During the year, Mr. Coloumb brought his lawnmower in to be repaired. The following information is available with respect to his repair:

Direct materials:	$65
Direct labor:	$40
Direct labor hours used:	2 dlh

What was the total cost to repair Mr. Coloumbs lawnmower?

Multiple Choice

• $344,085

• $145

• $905

• $189