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Author Question: Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to ... (Read 99 times)

RODY.ELKHALIL

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on: Mar 6, 2021
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:

MachiningAssembly
Direct labor-hours80,00040,000
Machine-hours20,00020,000
Direct labor cost$550,000$900,000
Manufacturing overhead costs$480,000$280,000

The accounting records of the company show the following data for Job #316:

MachiningAssembly
Direct labor-hours12055
Machine-hours505
Direct material cost$250$150
Direct labor cost$125$375
What are the total manufacturing costs of Job #316?
◦ $1,885.00
◦ $2,085.00
◦ $2,485.00
◦ $900.00
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by RODY.ELKHALIL on Mar 6, 2021

momtoalll

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Reply #1 on: Mar 6, 2021
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RODY.ELKHALIL

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

tranoy

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Reply 3 on: Yesterday
Wow, this really help

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