Wheat Manufacturing has four categories of overhead. The four categories and the expected overhead costs for each category for next year are as follows:

Maintenance	120,000
Materials handling	18,000
Setups	16,000
Inspection	60,000

Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labour hours. For next year, 20,000 direct labour hours are budgeted. The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result in new business in future years. Usually bids are based upon full manufacturing cost plus 15 percent. Estimates for the proposed job are as follows:

Direct materials	2,000
Direct labour (600 hours)	6,000
Number of materials moves	4
Number of inspections	6
Number of setups	8
Number of machine hours	80

Full manufacturing cost is calculated by allocating overhead using a volume-based cost driver: direct labour hours. If Wheat Manufacturing used direct labour hours as the cost driver and the company's bid is full cost plus 15 percent, the company's bid would be

a.

13,110

b.

17,480

c.

16,583

d.

12,765