Tel Corp. has the following estimated costs for 2016:

Direct materials ....................................... $160,000

Direct labour .......................................... 2,000,000

Rent on factory building ............................... 150,000

Sales salaries ............................................ 250,000

Depreciation on factory equipment .................. 80,000

Indirect labour .......................................... 120,000

Production supervisor's salary ........................ 150,000

Machine hours ............................................ 40,000

Other data:

Tel Corp. estimates that 20,000 direct labour hours will be worked during the year. Assume that manufacturing overhead is applied on the basis of machine hours and Job XY120 is completed during the year.

Instructions

(a) Calculate the overhead rate per machine hour.

(b) Calculate the rate of direct labour per hour.

(c) Calculate the total cost of a job that will take 200 machine hours, $15,000 indirect material, and 50 direct labour hours using a normal cost system.