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Question - T'ien Ltd. uses an ABC costing system. The following are the activities, cost drivers, and the overhead rate per activity for the upcoming year:
Activity
Estimated Total Cost
Cost Driver
Overhead Rate
Machine setup
$300,000
5,000 setups
$60.00
Materials handling
$250,000
100,000 parts
$2.50
Machining
$1,365,000
10,500 machine hours
$130.00
Test Runs
$450,000
3,000 test runs
$150.00
During the current period, Job 1was completed; and 15 hours of direct labor (at $20 per hour) and direct materials of $2,250 were added to the job during this current period. This job was started in the previous period and was in work -in- process inventory with a total cost of $3,200. During the current period, Job 1had 2 machine setups, 20 additional parts, 10 machine hours and 1 test run added.
Required: What is the total cost of Job 1?
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