[oruchei]

Job 1 7000 + 1750 + 13000 + 26000 = 47,750

[oruchei]

The question has a typo … chargeable hours for Job 2 are 12,600 and not 2600.

You need to work out the overheads value per job.

So,

13000 + 12600 + 9400 = 35,000

OAR = 70000/35000 = $2 which works out as 2:1 or $2 per $1 of labour

Job 1 overheads are $26000, Job 3 overheads are $18800.

Total of Job 1 and 3 now equal $84,350 (Option B)

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