The Highland Corporation Uses Departmental Overhead Rates to Allocate Its

Essay

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 rate of $9 per direct labour hour. Job 586 used the following direct labour hours and machine hours in the two departments:

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?