Calculate the total amount paid by the local construction company

for the 5,000 windows.

The estimated manufacturing overhead costs for Watts Window Company for 2010 are listed below: Work space $3,000,000 Quality control inspections ..... 1,000,000 Electric power 400,000 Materials handling 1,200,000 Machine setups 700,000 Watts Company assigns overhead costs to products using an activity based costing system. The following information pertains to the activity based cost drivers and overhead costs: Type of cost Activity based cost driver Work space $25,000 square feet Quality control inspections .. 160,000 number of inspections . Electric power ........ 250,000 kilowatt hours Materials handling 100,000 material moves Machine setups ********* 50,000 machine setups Watts just completed a job for a local construction company. The job contained 5,000 windows and required the following costs and activities in order to be completed: [Direct material cost. $20,000 Direct labor cost ...... $40,000 Kilowatt-hours 3,000 hours A number of machine setups ........... 50 setups Work space square feet 8,000 square feet Number of material handling moves........ 200 moves Number of quality control inspections... 40 inspections The local construction company paid Watts 140% of manufacturing costs for this job. Calculate the total amount paid by the local construction company for the 5,000 windows