1. Jenny's Jetpacks manufactures jetpacks and uses divisional-based costing to allocate overhead on the basis of direct labour hours. Direct materials and direct labour costs per sprocket are $197 and $103, respectively.

Producing one jetpack requires 32 labour hours comprised of:

• 15 hours in machining
• 10 hours in assembly, and
• 7 hours in finishing

Information for each department is as follows:

	Machining	Assembly	Finishing
Overhead costs	$185,000	$102,000	$75,000
Direct labour hours	30,000	8,000	15,000

Calculate the total cost of producing one jetpack. SHOW YOUR WORK & ALL CALCULATIONS!