Wood Grain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine-hours, and the rate in the Fabrication Department is based on direct materials cost. At the beginning of the year, the company's management made the following estimates for the year Machine-hours Direct labour-hours Direct materials cost Direct labour cost Manufacturing overhead cost Department Preparation Fabrication 80,000 21,000 35,000 65,000 $190,000 $400,000 $280,000 $530,000 $416,000 $720,000 Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job: Machine-hours Direct labour-hours Direct materials cost Direct labour cost Department Preparation Fabrication 350 70 80 $940 130 $1,200 $ 710 $980