Alltime Industries manufactures custom-designed playground equipment for schools and city parks. Alltime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $1,577,000 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During February, Alltime completed Job 302. The job used 160 direct labor hours and required $13,900 of direct materials. The City of Cooperstown has contracted to purchase the playground equipment at a price of 25% over manufacturing cost.
Requirements
1. Calculate the manufacturing cost of Job 302.
2. How much will the City of Cooperstown pay for this playground equipment?