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Author Question: Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The ... (Read 91 times)

D2AR0N

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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.

How much manufacturing overhead would be allocated to Job 542 using the departmental overhead rates?
◦ $225
◦ $245
◦ $175
◦ $125


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Marked as best answer by D2AR0N on Jan 4, 2020

jamesnevil303

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D2AR0N

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Reply 2 on: Jan 4, 2020
Great answer, keep it coming :)


frankwu0507

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Reply 3 on: Yesterday
:D TYSM

 

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