Raymond Industries uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. The company manufactures a variety of engines for use in farm equipment. At the beginning of the current year, Raymond estimated that its overhead for the coming year would be $371,800. It also anticipated using 26,000 direct labor hours for the year. Raymond pays its employees an average of $22 per direct labor hour. Raymond just finished Job 371, which consisted of two engines for a farm equipment manufacturer. The costs and hours for this job consisted of $13,500 in direct materials used and 180 direct labor hours.
Requirements
1. What is Raymond's predetermined manufacturing overhead rate based on direct labor cost?
2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371.
3. What is the total cost of Job 371?