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The following information is available pertaining to the Production Division of Clark Quay Pte Ltd: Assembly Dept. Finishing Dept. Total Overhead costs $7,500 $22,500 $30,000

The following information is available pertaining to the Production Division of Clark Quay Pte Ltd:

Assembly Dept. Finishing Dept. Total

Overhead costs $7,500 $22,500 $30,000

Direct labour hours 7,500 2,500 10,000

Machine hours 2,500 7,500 10,000

Production information pertaining to Job 4X4:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $-0- $1,250
Direct labour hours 250 -0- 250
Machine hours 0 0 0
Units produced 500 0 500

Based on departmental overhead rates, what is the cost of Job 4X4? Departmental overhead rates for the Assembly Department are based on direct labour hours, while departmental overhead rates for the Finishing Department are based on machine hours.

1.$7,500

2.$8,750

3.$1,500

4.$1,250

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