DJ Inc. manufactures appliances made to customer specifications and utilizes a job order costing system. Manufacturing overhead is currently applied to jobs on the basis of direct labor hours using a plant wide rate. The following estimates were made at the beginning of the year. The controller is considering using ABC for costing their products. Preparation Painting Assembly Total Plant Direct Labor hours 20,000 $200,000 50,000 $600,000 Direct Labor costs Manufacturing Overhead $800,000 $100,000 Activity Sanding Painting Units Assembled Activity Level 100,000 sq. 50,000 Units 800,000 sq. ft. painted ft. sanded assembled Daisy is currently bidding on a job that has the following cost components: Preparation Painting Assembly Direct Materials $10,000 $6,000 $1,000 200 Direct Labor Hours 700 1,200 Direct Labor costs $7,000 $2,000 $12,000 Activity Level 500 sq. ft. 400 sq. ft. 500 units assembled How much overhead would be charged to the job if: a) DJ used ABC costing? b) They used their current methodology? 30,000 $300,000 $500,000 100,000 $1,100,000 $1,500,000