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Author Question: Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The ... (Read 55 times)

madam-professor

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Bond 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 542 used the following direct labour hours and machine hours in the two departments:

Actual resultsAssembly DepartmentSanding Department
Direct labour hours used43
Machine hours used95

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 542 is $1,200.

What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?
◦ $1,375
◦ $1,600
◦ $1,425
◦ $1,500


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Marked as best answer by madam-professor on Jan 4, 2020

meow1234

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madam-professor

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review


kthug

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Reply 3 on: Yesterday
:D TYSM

 

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