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1. Carlson Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B.

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1. Carlson Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available: Budgeted CostsDept.A Direct labor cost Machine hours Factory overhead cost Dept.B $150,000 $165,000 20,000 $225,000 $180,000 51,000 Actual data for Job #10 are as follows: Actual Costs Direct materials requisitioned Direct labor cost Machine hours Dept.ADept.B $10,000$16,000 $11,000 $14,000 3,000 5,000 Required A) Compute the budgeted factory overhead rate for Department A. B) Compute the budgeted factory overhead rate for Department B. C) what is the total overhead cost for Job #10? D) If Job #10 consists of 50 units of product, what is the unit cost of this job? Answer: 2. Elmbrook Hospital uses a job-order costing system for all patients who have surgery. The following information is available: Budgeted indirect costs-pre-operating room Budgeted indirect costs-operating room Budgeted indirect costs-surgery recovery floor Budgeted nursing hours-pre-operating room Budgeted nursing hours-operating room Budgeted nursing hours-surgery recovery floor $84,000 $66,000 $600,000 4,000 1,000 7,500 The cost driver for all indirect costs is nursing hours. The hospital uses a budgeted rate for indirect costs. A patient spent 8 hours in the pre-operating room, 4 hours in the operating room and 96 hours on the surgery recovery floor. What amount of indirect costs will be applied to this patient? A) $336.00 B) $600.00 C) $7,680 D) $8,112

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