Safari Company produces customized rowboats. The company uses a job order costing system. Its plant has two production departments: cutting and machining. The departments have direct material and direct labor costs, in addition to overhead costs. The estimated manufacturing overhead cost and direct labor cost for each department for follow: Cutting Machining Total Manufacturing Overhead cost $400,000 $900,000 $1,300,000 Direct labor cost $300,000 $200,000 $500,000 Direct Labor hours 5,000 12,000 Machine Hours 10,000 30,000 Assume that separate, departmental predetermined manufacturing cost driver rates based on direct labor costs for Cutting, and machine hours for Machining, (separately). Determine the separate departmental manufacturing cost driver rates and manufacturing overhead costs applied to the Duluth job. The company received an invitation from Simpson rowing Company to bid on an order of fifty luxury rowboats. This Simpson Job would require direct manufacturing costs in the two departments as follows: Using the Cost Driver rate determined above allocate overhead to the departments and determine the cost of the job. Cutting Machining Total Direct material cost $12,000 $800 $12,800 Direct labor cost $7,000 $2,000 $9,000 Direct labor hours 50 30 Machine Hours 10 100 MOH Applied Total Cost