2. Best Electric has two production departments plant Y and plant Z. The company applies a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in plant Y is based on direct labor hours and in plant Z is based on machine hours. The following table shows the estimates of its costs at the beginning of the year -

	Department
	Plant Y	Plant Z
Machine-hours	10,000	80,000
Direct labor-hours	75,000	12,000
Total fixed manufacturing overhead cost	$575,000	$390,000
Variable manufacturing overhead per direct labor-hour	$4.00
Variable manufacturing overhead per machine-hour		$5.25

a) Calculate the predetermined overhead rate for Plant Y and for Plant Z. (5)

b) The company received a new job order, Job 445, which requires the following resources to complete

	Department
	Plant Y	Plant Z
Machine-hours	400	1,200
Direct labor-hours	120	25
Direct labor cost	$1,500	$280
Direct materials	$500	$700

Using predetermined departmental overhead rates, calculate the estimated manufacturing overhead cost for Plant Y and Plant Z related to Job 445. (10)

c) Calculate the total cost of Job 445. If the company charges a 25% markup, what would the selling price of Job 445? (5)