Question - T'ien Ltd. uses an ABC costing system. The following are the activities, cost drivers, and the overhead rate per activity for the upcoming year:
|
Activity
|
Estimated Total Cost
|
Cost Driver
|
Overhead Rate
|
|
Machine setup
|
$300,000
|
5,000 setups
|
$60.00
|
|
Materials handling
|
$250,000
|
100,000 parts
|
$2.50
|
|
Machining
|
$1,365,000
|
10,500 machine hours
|
$130.00
|
|
Test Runs
|
$450,000
|
3,000 test runs
|
$150.00
|
During the current period, Job 1was completed; and 15 hours of direct labor (at $20 per hour) and direct materials of $2,250 were added to the job during this current period. This job was started in the previous period and was in work -in- process inventory with a total cost of $3,200. During the current period, Job 1had 2 machine setups, 20 additional parts, 10 machine hours and 1 test run added.
Required: What is the total cost of Job 1?