If the company used activity based costing, calculate the total overhead cost that would be assigned for material handling to the job.

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Jefferson Blush Manufacturing Inc. ("the company") has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows: Costs Cost Driver Expected Activity Materials handling $360,000 Material moves Maintenance Inspection 18,000 $550,000 Machine hours $30,000 Inspections 55,000 10,000 Currently, the company applies overhead using a predetermined overhead rate based upon a budgeted direct labour hours of 80,000. The company has been asked to submit a bid on a proposed job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows: Direct materials Direct labour Number of direct labour hours $55,000 $45,000 15,000 Number of material moves 50 Number of inspections 180 Number of machine hours 3,000 Jefferson Blush Manufacturing Inc. ("the company") has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows: Costs Cost Driver Expected Activity Materials handling $360,000 Material moves Maintenance Inspection 18,000 $550,000 Machine hours $30,000 Inspections 55,000 10,000 Currently, the company applies overhead using a predetermined overhead rate based upon a budgeted direct labour hours of 80,000. The company has been asked to submit a bid on a proposed job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows: Direct materials Direct labour Number of direct labour hours $55,000 $45,000 15,000 Number of material moves 50 Number of inspections 180 Number of machine hours 3,000

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