Question
Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each
Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows:
DepartmentToolingFabricatingSupplies$ 690$ 80Supervisor's salaries1,4001,800Indirect labor1,0004,000Depreciation1,2005,200Repairs4,4003,000Total budgeted overhead$8,690$14,080Total direct labor hours440640Direct labor hours on Job 231102
Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be:
a.$241.50.
b.$44.00.
c.$197.50.
d.$501.00.
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