Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production

Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

Forming Assembly

Machine-hours 16,000 15,000

Direct labor-hours 2,000 6,000

Total fixed manufacturing overhead cost $ 102,400 $ 55,200

Variable manufacturing overhead per machine-hour $ 2.30

Variable manufacturing overhead per direct labor-hour $ 4.50

During the current month the company started and finished Job T924. The following data were recorded for this job:

Job T924: Forming Assembly

Machine-hours 70 20

Direct labor-hours 30 40

Direct materials $ 870 $ 385

Direct labor cost $ 630 $ 840

The total amount of overhead applied in both departments to Job T924 is closest to: (Round your intermediate calculations to 2 decimal places.) A) $1,157 B) $548 C) $609 D) $1,705

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Accounting questions