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Accounting Management Decisions Please answer both questions NEED HELP REALLY STRUGGLING THANK YOU Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to
Accounting Management Decisions
Please answer both questions
NEED HELP REALLY STRUGGLING
THANK YOU
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments: The cost for direct labor is $20 per direct labor hour and the cost of the direct materials used by Job 542 is $1,500. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead? A. $2,700 B. $2,415 C. $1,780 D. $1,760 The Sit - N - Spin Corporation manufactures and assembles office chairs. Sit - N - Spin uses an activity - based costing system to allocate all manufacturing conversion costs. Each chair consists of 10 separate parts totaling $135 in direct materials, and requires 5 hours of machine time to produce. Additional information follows: What is the cost of assembling per chair? A. $33.75 B. $47.50 C. $5.00 D. $20.00Step by Step Solution
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