Author Question: The Dougherty Furniture Company manufactures tables. In March, the two production departments had ... (Read 61 times)

appyboo · **on:** Mar 6, 2021

The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

Department 100

Department 200

Direct materials purchased on account

$110,000

$177,500

Direct materials used

32,500

13,500

Direct manufacturing labor

52,500

53,500

Indirect manufacturing labor

11,000

9,000

Indirect materials used

7,500

4,750

Lease on equipment

16,250

3,750

Utilities

1,000

1,250

Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

Required:

a.	Determine the budgeted manufacturing overhead rate for each department.

b.	Prepare the necessary journal entries to summarize the March transactions for Department 100.

c.	What is the total cost of Job A?

Galvarado142 · **Reply #1 on:** Mar 6, 2021

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