Elkton Restaurant Supply manufactures commercial stove and ovens for restaurants and bakeries. Elkton uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. At the beginning of the current year, Elkton estimated that its overhead for the coming year will be $530,400. It also anticipated using 30,000 direct labor hours for the year. Elkton pays its employees an average of $40 per direct labor hour. Elkton just finished job 371, which consisted of two large ovens for a regional bakery. The costs for Job 371 were as follows:
Job 371
Direct materials used..........................................................................$16,500
Direct labor hours used..............................................................................130
Requirements
1. What is Elkton's predetermined manufacturing overhead rate based on direct labor cost?
2. Calculate the manufacturing overhead to be allocated based on direct labor costs to Job 371.
3. What is the total cost of Job 371?