Jungle Jim Industries manufactures custom-designed playground equipment for schools and city parks. Jungle Jim expected to incur $707,200 of manufacturing overhead cost, 41,600 of direct labor hours, and $810,000 of direct labor cost during the year (the cost of direct labor is $36 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Jungle Jim completed Job 303. The job used 155 direct labor hours and required $13,000 of direct materials. The City of Forest Hills has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Requirements
1. Calculate the manufacturing cost of Job 303.
2. How much will the City of Forest Hills pay for this playground equipment?