Cornwell Products has adopted an ABC costing system to allocate its overhead costs. The following manufacturing activities and cost drivers have been identified: Activity Estimated OH Costs Esimated amount of allocation base Machine setup $180,000 2,000 setups Machining $1,050,000 12,000 machine hours Polishing $100,000 5,000 polishing cloths Quality control $320,000 4,000 test runs Facility-level costs $150,000 50,000 DL hours Total overhead costs $1,800,000 The job cost record for Job #804 revealed the following: Direct material costs: $1,250 Direct labor: 12 hours at a wage rate of $30/hr 1 machine setup 6 machine hours 4 polishing clothes 3 quaity control test runs How much overhead would be allocated to Job #804 for the quality control activity?
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