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Hamilton Ltd manufactures components ABC. The product uses two overhead activities, with the following expected costs and activity driver quantity information: Machining $2,500 50 machine

Hamilton Ltd manufactures components ABC. The product uses two overhead activities, with the following expected costs and activity driver quantity information:

Machining

$2,500

50 machine hours

Setting up equipment

$26,000

200 set up hours

The company received a job order of 15,000 units of component ABC from a customer that has the following production requirements:

Direct materials

$300,000

Direct labour

$100,000

Set-up hours

1800

Machine hours

1500

Calculate the overhead cost for the job using activity-based costing.

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