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A manufacturing company uses departmental cost driver rates to allocate manufacturing overhead costs to various jobs. Manufacturing overhead costs are allocated on the basis of
A manufacturing company uses departmental cost driver rates to allocate manufacturing overhead costs to various jobs. Manufacturing overhead costs are allocated 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 2020, the following estimates are provided for the coming year: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Machining 80,000 30,000 $640,000 $420,000 Assembly 48,000 40,000 $720,000 $240,000 The accounting records of the company show the following data for Job #66: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Machining 12 25 $320 $96 Assembly 10 5 $154 $150 Required: (Enter your numeric answer for each requirement in the given answer box; Do not include dollar sign or comma in your answer; 5 points each) A) What is the amount of manufacturing overhead costs to be allocated to Job #66? B) What is the bid price for Job #66 if the manufacturing company uses a 40% markup of total manufacturing costs
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