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Richetti Company has expected overhead costs of $ 1 1 , 2 0 0 , 0 0 0 . The majority of the overhead costs

Richetti Company has expected overhead costs of $11,200,000. The majority of the overhead costs are incurred providing production support to the direct labor force. Direct labor rates vary from $10 to $20 per hour, and more complex tasks are assigned to more skilled workers who have higher pay rates. Richetti projects direct labor costs of $2,800,000 and 280,000 direct labor hours. More complex tasks require proportionally more support than do the less complex tasks. Each model/size of shoe is produced in a single production run and constitutes a job. During the year, the company produced 5,000 pairs of the model K25, size 8 dress shoe. A total of 7,800 direct labor hours, costing $63,000 were assigned to the job. Calculate the amount of overhead assigned to the model K25, size 8 dress shoe, using both direct labor hours and direct labor cost as the allocation base.

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