Mike's Inc. has Total Estimated MOH for Assembly and Testing Departments of $560,000 and $340,000, respectively, Mike Company uses departmental predetermined overhead rates
based on machine-hours. Estimated machine hours for Assembly and Testing Departments are 20,000 and 30,000 hours respectively.
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job A-20 and Job D-150. It provided the following information
related to those two jobs:
Job A-20
Assembly Testing Total
Direct Material Cost $380,000 $330,000 $710,000
Direct Labor Cost $240,000 $160,000 $400,000
Actual Machine-Hours 16,000 6,000 22,000
Job D-150
Assembly Testing Total
Direct Material Cost $260,000 $300,000 $560,000
Direct Labor Cost $140,000 $280,000 $420,000
Actual Machine-Hours 6,000 24,000 30,000
Compute the total manufacturing cost assigned to Job A-20.
$2,685,320
$1,600,000
$1,625,980
$2,419,320