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The Highland Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments-cutting and painting. The cutting department uses

The Highland Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments-cutting and painting. The cutting department uses a departmental overhead rate of $15 per machine hour, while the painting department uses a departmental overhead of $9 per direct labour hour. Job 586 used the following direct labour hours and machine hours in the two departments:

Actual results

Casting Department

Painting Department

Direct labour hours used

6

5

Machine hours used

12

10

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by job 586 is $900

Required: What was the total cost of job 586 if the Highland Corporation used the departmental overhead rates to allocate manufacturing overhead?

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