Question
1) Eeeva Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y.
1) Eeeva Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted Amounts Department X Department Y Direct labor cost $180,000 $165,000 Factory overhead $225,000 $200,000 Machine-hours 51,000 mh 40,000 mh Actual data for Job #25 Department X Department Y Direct materials requisitioned $15,000 $18,000 Direct labor cost $11,000 $14,000 Machine-hours 5,000 mh 3,000 mh e. What is the proportion of the direct labor cost incurred with respect to the total cost of the job? f. Should the company go ahead with this job?
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