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The 1 9 5 Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is considering replacing its current costing system with an

The 195 Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is considering replacing its current costing system with an activity-based approach. It has identified three activities: computer-aided design; fabrication; and assembly and finishing. Data regarding these activities has been collected in the table below.
Activity
Activity Driver
Driver Consumption
Activity Cost Pool
Computer-aided design (CAD)
(CAD) hours
2,000
$1,000,000
Fabricating
Machine hours
2,000
$600,000
Assembly and finishing
Direct labor hours
8,000
$400,000
Two jobs are currently complete and ready for delivery to the customer. One is a wing assembly that required raw materials costing $5,000 and consumed 40 direct labor hours (at $25.00 per hour). The wing assembly is a standard product that required only one (1) hour of CAD time and three (3) hours of machine time.
What is the total cost that an activity-based costing system would assign to this job?

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