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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 uses
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 $45 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 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 OA. $1,585 OB. $2,120 O C. $1,550 O D. $2,055 7 11 Sanding Department 3 5 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead?
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