Question
Chand Enterprise provided the following information of its material management department: Budgeted usage of materials-handling labour-hours (allocation base for fixed costs) 3,234 Budgeted cost pools:
Chand Enterprise provided the following information of its material management department:
Budgeted usage of materials-handling labour-hours (allocation base for fixed costs) 3,234
Budgeted cost pools:
Fixed costs $152,873
Variable costs 3,234 hours x $35 per labour hour
The company uses the single-rate method to allocate support costs to the Machining and Assembly Departments based on actual materials-handling labour-hours. Assuming that the actual materials-handling labour-hours tracked in the Machining and Assembly department are 506 for the month, how much cost would be allocated to both the Machining and Assembly Department for the operations of the month?
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