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A cost accountant is developing departmental factory overhead application rates for the companys tooling and fabricating departments. The budgeted overhead for each department and the
A cost accountant is developing departmental factory overhead application rates for the companys tooling and fabricating departments. The budgeted overhead for each department and the data for one job are shown below. | |||||
Department: | |||||
Tooling | Fabricating | ||||
Supplies | 1,190 | 280 | |||
Supervisors salaries | 2,100 | 2,800 | |||
Indirect labor | 1,680 | 6,832 | |||
Depreciation | 1,400 | 7,700 | |||
Repairs | 5,705 | 4,956 | |||
Total budgeted overhead | 12,075 | 22,568 | |||
Total direct labor hours | 644 | 868 | |||
Direct labor hours on Job #231 | 20 | 10 | |||
Using the departmental overhead application rates, total overhead applied to Job #231 in the Tooling and Fabricating Departments will be |
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