Have Fun Industries manufactures custom-designed playground equipment for schools and city parks. Have Fun expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $870,000 of direct labor cost during the year (the cost of direct labor is $24 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During December, Have Fun completed Job 309. The job used 190 direct labor hours and required $15,100 of direct materials. The City of Jonestown has contracted to purchase the playground equipment at a price of 22% over manufacturing cost.
Requirements
1. Calculate the manufacturing cost of Job 309.
2. How much will the City of Jonestown pay for this playground equipment?