Steel Company uses activity-based costing and reports the following for this year. Allocate overhead costs to a job that uses 40 machine hours and 30 direct labor hours.

Activity	Budgeted Cost	Activity Cost Driver	Budgeted Activity Usage
Cutting	$ 56,000	Machine hours (MH)	2,000	machine hours
Assembly	240,000	Direct labor hours (DLH)	6,000	direct labor hours
Total	$ 296,000

Multiple Choice

• $1,960.

• $2,320.

• $2,800.

• $2,440.

• $2,660.