The Raleigh Company is located in North Carolina and uses predetermined overhead rates to apply manufacturing overhead costs to jobs. The predetermined overhead rate is based on machine hours in Department A and direct labor costs in Department B. At the beginning of the year, the company made the following estimates:
Dept A : Direct Labor Cost : $65,000 Dept B : $40,000
Dept A : Manufacturing Overhead : $87,000 Dept B : $50,000
Dept A : Direct Labor Hours : 8,000 Dept B : 10,000
Dept A : Machine Hours : 3,000 Dept B : 12,000
Raleigh recently received an order from a company in Vermont. The expected cost of this job is :
Dept A : Direct Materials : $10,000 Dept B : Direct Materials : $700
Dept A: Direct Labor Cost : $7,000 Dept B: $3,500
Dept A : Direct Labor Hours : 500 Dept B: 600
Dept B : Machine Hours : 100 Dept B : 435
Question: What is the estimated total cost of this job?
A) 7275.00 B) 28,475.00 C) 10,500.00 D) 10,700.00