SHOW YOUR WORK !!!

Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 396 used the following direct labour hours and machine hours in the two departments:

Actual results	Assembly Department	Sanding Department
Direct labour hours used	4	3
Machine hours used	9	5

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 396 is $1,200.

What was the total cost of Job 396 if Babcock Industries used the departmental overhead rates to allocate manufacturing overhead?

a.	$1,425
b.	$1,375
c.	$1,500
d.	$1,600
e.	$1,630