Total production overheads for January for a company were $120,000. These costs are absorbed into products based on budgeted direct labour hours and during January 20,000 direct labour hours were budgeted to be incurred.

During January product F was manufactured and it incurred the following, direct material costs of $570 and direct labour costs of $240. Labour is paid at $8/hour. The profit for product F is to be 10% of the selling price. What is the profit on product F?

a. $81

b. $110

c. $99

d.$105