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cost accounting Question 1: Habitat Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100
cost accounting
Question 1: Habitat Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were SAR 57,500 and SAR 62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows: Department 100 Department 200 Direct materials purchased on accountSAR110,000 SAR177,500 Direct materials used 32,500 13,500 Direct manufacturing labor 52,500 53,500 Indirect manufacturing labor 11,000 9,000 Indirect materials used 7,500 4,750 Lease on equipment 16,250 3,750 Utilities 1,000 1,250 Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production. Required: (4 marks) a. Determine the budgeted manufacturing overhead rate for each department. (1 pts) b. Prepare the summary journal entry to record the allocation of manufacturing overhead for Department 100. (1.5 pts) c. What is the total cost of Job A? (1.5 pts) Step by Step Solution
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