James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two
Question:
James 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 $34 per machine hour, while the Sanding Department uses a departmental overhead rate of $19 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:
The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1320.
What was the total cost of Job 603 if James Industries used the departmental overhead rates to allocate manufacturing overhead?
Step by Step Answer:
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp