All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $637,500 of manufacturing overhead cost, 42,500 of direct labour hours, and $860,000 of direct labour cost during the year (the cost of direct labour is $38 per hour). The company allocates manufacturing overhead on the basis of direct labour hours. During May, All Wood completed Job 305. The job used 180 direct labour hours and required $13,000 of direct materials. The City of Ogdenville has contracted to purchase the playground equipment at a price of 23% over manufacturing cost.

Requirements

1. Calculate the manufacturing cost of Job 305.

2. How much will the City of Ogdenville pay for this playground equipment?