Question
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. 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 20X3, the following estimates were provided for the coming year: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Machining 40,000 Assembly 40,000 50,000 20,000 $575,000.00 $750,000.00 $280,000.00 $360,000.00 The accounting records of the company show the following data for Job # 316: Direct labor-hours Machine-hours Direct material cost Direct labor cost Machining 120 60 Assembly 85 5 $450.00 $150.00 $275.00 $350.00 What amount of manufacturing overhead costs will be allocated to Job #316? A. $1,950.00 B. $1,101.00 C. $1,866.00 D. $1,005.00
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