Test your understanding 2 A business has a job costing system and prices jobs using total absorption costing. The cost estimates for Job 264 are as follows: Direct materials 50 kg @ $4 per kg Direct labour 30 hours @ $9 per hour Variable production overhead $6 per direct labour hour Fixed production overheads are budgeted as $80,000 and are absorbed on the basis of direct labour hours. The total budgeted direct labour hours for the period are 20,000. Other overheads are recovered at the rate of $40 per job. Calculate the total job cost for Job 264