Nautical Creations manufactures high-end boat accessories for large custom yachts. Nautical has always applied manufacturing overhead using a traditional predetermined overhead rate based on direct labor hours, this year it is $45 per DLH. Nautical is currently evaluating the use of activity-based driver rates to apply manufacturing overhead cost and has assembled the following budgeted amounts and actual activity required to produce Job #258. Activity DriverBudgeted Cost Budgeted ActivityActivity used on Job #258 Machining time $200,000 5,000 hours 600 hours Direct labor time $220,000 10,000hours 800hours Quality inspection time $30,000 2,000 hours 200 hours Using the activity-based costing method of applying manufacturing overhead, the amount of overhead applied to Job #258 would be:
A. $63,000.
B. $44,600.
C. $72,000.
D. $36,000.
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