Love It Industries manufactures custom$-$designed playground equipment for schools and city parks. Love It expected to incur $$750,600$ of manufacturing overhead cost, $41,700$ of direct labor hours, and $$1,251,000$ of direct labor cost during the year $($the cost of direct labor is $$30$ per hour$).$ The company allocates manufacturing overhead on the basis of direct labor hours. During November, Love It completed Job $308.$ The job used $170$ direct labor hours and required $$13,000$ of direct materials. The City of Ogdenville has contracted to purchase the playground equipment at a price of $21\%$ over manufacturing cost.

Read the requirements.

Requirement $1.$ Calculate the manufacturing cost of Job $308.$

First identify the formula, then calculate the predetermined overhead rate.

Estimated yearly overhead costs $$

Estimated yearly direct labor hours $=$ Predetermined overhead rate $=$ jer hour

Requirements

Calculate the manufacturing cost of Job $308.$

How much will the City of Ogdenville pay for this playground equipment?