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 2018, the following estimates were provided for the coming year: Machining Direct labor-hours 80,000 Machine-hours 20,000 Direct labor costs $450,000 Manufacturing overhead costs $480,000 The accounting records of the company show the following data for Job #316 Machining Direct labor-hours 120 Assembly 90 Machine-hours 75 5 OA. $2,580 OB. $3,480 OC. $1,050 OD. $2,830 Assembly 40,000 20,000 $825,000 $280,000
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