horngreen Cost Accounting- A Managerial Emphasis 8th Canadian Edithion

Lambda Company calculated an indirect-cost rate of $12.50 per labour hour for fringe benefits for use in their normal costing system. At the end of the year, the actual costs of fringe benefits was $105,000 more than the budgeted amount used to compute the indirect-cost rate. The total of labour hours worked for the year was the same amount as budgeted, 70,000 hours. If Job #1000 required the use of 15 labour hours and the company used the adjusted allocation rate approach, by what amount would the cost of Job #1000 change?