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5. Toyz Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours

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5. Toyz Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2014, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours (dlh) 10,000 dlh 150,000 dlh Machine-hours (mh) 100,000 mh 5,000 mh Direct labor cost $ 80,000 $720,000 Manufacturing overhead costs $200,000 $450,000 The accounting records of the company show the following data for Job #897: Machining Assembly Direct labor-hours (dlh)50dlh 120 dlh Machine-hours (mh) 170 m 0 mh Direct material cost $3,000$1,600 Direct labor cost$400 $1,500 Required: Compute the manufacturing overhead allocation rate for eaclh department Compute the total cost of Job #897. 1| Page

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