EmKay Company is divided into two departments for accounting purposes. The direct labor hours and overhead costs for the last year are as follows:

What selling price should the company quote on Job Order A54 if the following conditions apply?
Raw material costs are estimated as \($750\) 

Estimated direct labor hours required in 

Departments A and B are 25 hours and 50 hours, respectively 

Workers in both departments earn \($15\) per hour 

Overhead costs in each department are allocated based on an overhead rate per direct labor hour

Profit is to be 25 percent of total cost

Transcribed Image Text:

Department Direct Labor Hours Overhead Costs A 900 $13,500 B 1,350 $27,000