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13-A2 Accounting for Overhead, Budgeted Rates McFarland Aeronautics Company uses a departmental overhead allocation system. Overhead is allocated to job orders on a machine-hour basis
13-A2 Accounting for Overhead, Budgeted Rates McFarland Aeronautics Company uses a departmental overhead allocation system. Overhead is allocated to job orders on a machine-hour basis for Department A and a direct-labor-hour basis for Department B. At the beginning of the year, the company's management made the following budget predictions: Department A Department B Direct-labor cost $1,500,000 $1,200,000 Factory overhead $1,820,000 $1,000,000 Direct-labor hours 90,000 125,000 Machine hours 350,000 20,000 Cost records of recent months show the following accumulations for Job Order No. 455: Department A Department B Material placed in production $12,000 $32,000 Direct-labor cost $10.800 $10,000 Direct-labor hours 900 1.250 Machine hours 3,500 150 Required 1, Using a plantwide allocation system, with direct labor hours as the single cost driver, how much overhead is allocated to Job Order 455? Submit Answer Tries 0/99 2, Using the department allocation system, how much overhead is allocated to Job Order 455? Submit Answer Tries 0/99
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