Author Question: Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The ... (Read 79 times)

madam-professor · **on:** Jan 4, 2020

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 results	Assembly Department	Sanding Department
Direct labour hours used	4	3
Machine hours used	9	5

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

meow1234 · **Reply #1 on:** Jan 4, 2020

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