James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $34 per machine hour,while the Sanding Department uses a departmental overhead rate of $24 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:
|
|
Assembly Department
|
Sanding Department
|
|
Direct labor hours used
|
8
|
5
|
|
Machine hours used
|
10
|
7
|
The cost for direct labor is $34 per direct labor hour and the cost of the direct materials used by Job 603 is $1392.
What was the total cost of Job 603 if James Industries used the departmental overhead rates to allocate manufacturing overhead?