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Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production

Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departments predetermined overhead rate is based on machine-hours and the Assembly Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

Forming Assembly
Machine-hours 19,000 15,000
Direct labor-hours 4,000 8,000
Total fixed manufacturing overhead cost $129,200 $77,600
Variable manufacturing overhead per machine-hour $ 1.60
Variable manufacturing overhead per direct labor-hour $ 3.00

During the current month the company started and finished Job T288. The following data were recorded for this job:

Job T288: Forming Assembly
Machine-hours 80 10
Direct labor-hours 30 40
Direct materials $730 $ 380
Direct labor cost $900 $1,200

If the company marks up its manufacturing costs by 20% then the selling price for Job T288 would be closest to: (Round your intermediate calculations to 2 decimal places.)

$878.00

$5,268.00

$4,390.00

$5,795.00

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