Step 1: Calculate the estimated total manufacturing overhead cost for each department Total fixed manufacturing overhead cost Milling $390,000 Assembly $500,000 Variable manufacturing overhead per machine-hour or direct labor-hour $2.00 $3.75 Total machine-hours or direct labor-hours 60,000 80,000 Total variable manufacturing overhead $120,000 $300,000 Total manufacturing overhead $510,000 $800,000 Step 2: Calculate the predetermined overhead rate in each department Milling Assembly Total manufacturing overhead $510,000 $800,000 Total machine-hours or direct labor-hours 60,000 80,000 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 Step 3: Calculate the amount of overhead applied from both departments to Job 407 Milling Assembly Predetermined overhead rate per machine-hour or direct labor-hour Machine-hours or direct labor-hours for the job $8.50 90 Manufacturing overhead applied $765.00 $10.00 20 $200.00 Step 4: Calculate the total job cost for Job 407 Direct materials Direct labor cost Manufacturing overhead applied Total cost of Job 407 Step 5: Calculate the selling price for Job 407 Milling Assembly Total $80.00 $2.00 $82.00 $9.00 $20.00 $29.00 $765.00 $200.00 $965.00 $1,076.00 Total cost of Job 407 Markup Selling price of Job 407 1,076.00 0.75 1,883.00