Raymond Restaurant Supply manufactures commercial stoves and ovens for restaurants and bakeries. Raymond uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. At the beginning of the current year, Raymond estimated that its overhead for the coming year would be $485,100. It also anticipated using 22,000 direct labor hours for the year. Raymond pays its employees an average of $35 per direct labor hour. Raymond just finished Job 371, which consisted of two large ovens for a regional bakery. The costs for Job 371 were as follows:
Job 371
Direct materials used ....................................................................................$14,500
Direct labor hours used .......................................................................................180
Requirements
1. What is Raymond's predetermined manufacturing overhead rate based on direct labor cost?
2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371.
3. What is the total cost of Job 371?