The Molotov plant of Kaboom Industries has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:

Maintenance	$50,000
Inspection	75,000

The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours. The following data have been assembled for use in developing a bid for a proposed job:

Direct materials	$500
Direct labor	$2,000
Machine hours	500
Number of inspections	4
Direct labor hours	800

Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.

Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would be

	a.	$3,875.
	b.	$1,200.
	c.	$1,800.
	d.	$3,700.