Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead
Question:
Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company€™s two production departments have the following departmental overhead rates:
Cutting Department:...... $10 per machine hour
Finishing Department:......$17 per direct labour hour
Job 392 used the following direct labour hours and machine hours in the two manufacturing departments:
1. How much MOH should be allocated to Job 392?
2. Assume that direct labour is paid at a rate of $25 per hour and Job 392 used $2,500 of direct materials. What was the total manufacturing cost of Job 392?
Step by Step Answer:
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp