Playtime Industries manufactures custom$-$designed playground equipment for schools and city parks. Playtime expected to incur $$906,400$ of manufacturing overhead cost, $41,200$ of direct labor hours, and $$824,000$ of direct labor cost during the year $($the cost of direct labor is $$20$ per hour$).$ The company allocates manufacturing overhead on the basis of direct labor hours. During March, Playtime completed Job $307.$ The job used $180$ direct labor hours and required $$13,000$ of direct materials. The City of Northville has contracted to purchase the playground equipment at a price of $26\%$ over manufacturing cost.

Read the requirements.

Requirement $1.$ Calculate the manufacturing cost of Job $307.$

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

$\backslash$table$[[$Estimated yearly overhead costs,$,$Estimated yearly direct labor hours,$=,,],[$$$906,400,,41,200,=,22,$Predetermined overhead rate$]]$

Calculate the manufacturing cost of Job $307.$

Direct materials

$\backslash$table$[[$irect labor,$],[$Manufacturing overhead,$],[$Total job cost$]]$

Requirements

Calculate the manufacturing cost of Job $307.$

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