Actual materials and direct labor hours incurred by the service department during the year are: Materials Actual
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Actual materials and direct labor hours incurred by the service department during the year are:
Materials Actual DLH New Car Department § 2,100 1,300 Used Car Department 7,890 4,700 Service Department 86,300 19,100 Total $96,290 25,100 Required:
1. Calculate the single charging rate per hour of labor.
2. Suppose that the used car department gets a ‘94 Festiva as a trade-in that needs general maintenance and some transmission work. The service department spends 8 hours working on the car and uses $478 of parts. Calculate the charge to the used car department by the service department.
3. Calculate the total costs charged by the service department to each of the producing departments for the year.
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