Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diamond Industries uses departmental overhead rates to allocate its makufacturing overhead to jobe. The company has two departments Assembly and Sanding. The A scembly Department

Diamond Industries uses departmental overhead rates to allocate its makufacturing overhead to jobe. The company has two departments Assembly and Sanding. The A scembly Department uses a departmental overhead rate of $20 per madhine hour, while the Sanding Department uses a departmental overhe ad rate of $15 per direct labour hour. Job 396 used the following direct labour hours and machine hours in the two departments:
\table[[Actual reaults,\table[[Assembly],[Department]],\table[[Sanding],[Department]]],[Direct labour hours used,4,3],[Machine hours used,9,5]]
The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 396 is $1,200.
What was the total cost of Job 396 if Babcock Industries used the departmental overhead rates to allocate manufacturing overhead?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Creative Accounting, Fraud And International Accounting Scandals

Authors: Michael J. Jones

1st Edition

0470057653, 9780470057650

More Books

Students also viewed these Accounting questions

Question

Prepare a short profile of Henry words worth Longfellow?

Answered: 1 week ago

Question

What is RAM as far as telecommunication is concerned?

Answered: 1 week ago

Question

Question 1: What is reproductive system? Question 2: What is Semen?

Answered: 1 week ago

Question

Describe the sources of long term financing.

Answered: 1 week ago