1. Aztec Builders allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year:

Direct materials used	$24,000
Direct labour costs	$62,000
Salary of factory supervisor	$49,000
Advertising expense	$33,000
Heating and lighting costs for factory	$21,000
Depreciation on factory equipment	$10,000
Sales commissions	$8,000

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2. Blockbuster Entertainment manufactures digital video equipment. For each unit $1475 of direct material is used and there is $1,500 of direct manufacturing labour at $30 per hour. Manufacturing overhead is applied at $35 per direct manufacturing labour hour. Calculate the cost of each unit.
   1. $2,975
   2. $4,025
   3. $1,750
   4. $3,150
   5. $4,725