Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10000 direct labor hours and the Luxury requires 30000 direct labor hours. The company produces 3400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $1504000 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Basic model using ABC costing?

$376000

$752000

$544000

$1278400