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Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the comingyear: Cost Pool Overhead Costs Cost driver

Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the comingyear:

Cost Pool Overhead Costs Cost driver Activity level

Supervision of direct labor$320,000 Direct labor hours800,000

Machine maintenance$120,000 Machine hours960,000

Facility rent $200,000 Square meters of area100,000

Total overhead costs$640,000

The accounting records show the Mossman Job consumed the followingresources:

Cost driver Actual level

Direct labourhours 200

Machinehours 1,600

Square meters of area 50

If Gregory Enterprises uses a simple cost system based on direct labor hours then what amount of indirect costs will be allocated to the Mossmanjob?

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