Calculate the cost of Job 845 using a machine hour departmen

Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($32 per hour) and a direct hour overhead rate for the Finishing Department ($102 per hour). (Round your answer to the nearest dollar.)

Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs:

The following additional data were provided for Job 845:

Setup (1,000 setup hours)	$118,000
Production scheduling (400 batches)	60,000
Production engineering (60 change orders)	150,000
Supervision (2,000 direct labor hours)	46,000
Machine maintenance (12,000 machine hours)	60,000
Total activity costs	$434,000

Solution

Cost of job 845 Direct material          7,000 Direct labor          1,000 Overhead applied: milling dept             800 =32*25 Finishing dept          3,570 =102*35 Total job cost        12,370