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Cornwell Products has adopted an ABC costing system to allocate its overhead costs. The following...

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Accounting

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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