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Betty DeRose, Inc. operates two production departments, molding and assembly, and two service departments, repair...

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Accounting

Betty DeRose, Inc. operates two production departments, molding and assembly, and two service departments, repair and power. Service department costs are allocated to production departments using a reciprocal two-stage allocation method. Repair department costs are allocated on the basis of repair hours and power department costs are allocated on the basis of kilowatt hours. In the second stage, departmental overhead rates for the two production departments are calculated using direct labor hours as the activity for each department. Information for the four departments is given below:

Repair Power Molding Assembly

Directly trace overhead $96,000 $262,000 $200,000 $320,000

Repair hours 10,000 1,000 1,000 8,000

Kilowatt hours 360,000 800,000 720,000 120,000

Direct labor hours N/A N/A 50,000 120,000

The company is preparing to bid on a job, job #45, which requires 25 direct labor hours in the molding department and 20 direct labor hours in the assembly department. The direct material and direct labor cost for job #45 is expected to total $225.

Calculate the total expected cost of job #45. Do not use decimals in your answer.

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