Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 396 used the following direct labour hours and machine hours in the two departments:Actual resultsAssembly DepartmentSanding DepartmentDirect labour hours used43Machine hours used95The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 396 is $1,200.What was the total cost of Job 396 if Babcock Industries used the departmental overhead rates to allocate manufacturing overhead?a.$1,425b.$1,375c.$1,500d.$1,600e.$1,630
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