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Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments Assembly and Sanding The Assembly Department
Cabinets Unlimited 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 $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour Job 542 used the following direct labor hours and machine hours in the two departments Actual results Direct labor hours used Machine hours used Assembly Department Sanding Department 9 3 8 The cost for direct labor is $40 per direct labor hour and the cast of the direct materials used by Job 542 is $1,300. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead? OA. $2,410 OB. $2,500 OC. $1,780 OD. $1,820
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