Webber fabricating estimated the following annual costs.

Expected annual direct labor hours................ 40,000

Expected annual direct labor cost.............. $ 625,000

Expected machine hours.................................. 20,000

Expected material cost for the year........... $ 800,000

Expected manufacturing overhead......... $1,000,000

Required

a. Calculate overhead allocation rates using each of the four possible allocation bases provided.

b. Determine the cost of the following job (number 253) using each of the four overhead allocation rates.

Job 253

Direct materials................................ $3,000

Direct labor (150 hrs @ $12/hr) ..... $1,800

Machine hours used.............................. 150