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Author Question: Apple Valley Corporation uses a job cost system and has two production departments, A and B. ... (Read 53 times)

OSWALD

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on: Mar 6, 2021
Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:

Department ADepartment B
Direct materials$700,000$100,000
Direct manufacturing labor$200,000$800,000
Manufacturing overhead$500,000$400,000

The actual material and labor costs charged to Job #432 were as follows:

Total
Direct materials:$25,000
 Direct labor:
Department A$8,000
Department B$12,000
$20,000

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For Department A, the manufacturing overhead allocation rate is ________.
◦ 40.0%
◦ 50.0%
◦ 250.0%
◦ 90.0%
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by OSWALD on Mar 6, 2021

Anton

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Reply #1 on: Mar 6, 2021
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OSWALD

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

cassie_ragen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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