Munch Lab produces and sells gourmet gift baskets. The company currently uses traditional job$-$order costing that allocates indirect

costs based on the budgeted production of baskets. Munch Lab is considering using two$-$stage allocation to assign overhead costs to

batches of product. Management gathers the following estimates:

Budgeted MOH $ $$240,000$

Budgeted machine hours $1,000$

Budgeted direct labor hours $16,000$

Budgeted baskets $40,000$

Job $314$ is an order for $10$ gift baskets. The job requires $2$ hours of labor and $15$ minutes of machine time.