Lucas 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 $ 60 per machine hour, while the Sanding Department uses a departmental overhead rate of $ 20 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:
Direct labor hours usedAssembly Department - 8
Sanding Department - 5
Machine hours used
Assembly Department - 10Sanding Department - 7
The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job 603 is $1351.
What was the total cost of Job 603 if James Industries used the departmental overhead rates to allocate manufacturing overhead?
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