Mahoney Plant Service completed a special landscaping job for Cory Company. Mahoney uses ABC and has the following predetermined overhead allocation rates:

The Cory job included $675 in plants; $700 in direct labor; one design; and 45 plants.
Requirements
1. What is the total cost of the Cory job?
2. If Cory paid $2,495 for the job, what is the operating income or loss?
3. If Mahoney desires an operating income of 40% of cost, how much should the company charge for the Cory job?

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Predetermined Overhead Activity Allocation Base Allocation Rate Designing Number of designs $ 260 per design Planting Number of plants 8 per plant