Use the Information Below to Answer the Following Question(s)

question 21

Multiple Choice

Use the information below to answer the following question(s) .Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units.The company uses activity-based costing. The above activities are used by departments X and Y as follows:

-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: The 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)$1,375
• B)$1,425
• C)$1,500
• D)$1,600
• E)$1,630