Question
Figure 5-3. Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $570,000 $130,000 $700,000 Direct
Figure 5-3. Mitchell's Softball Gloves Company estimated the following at the beginning of the year:
| Assembly Department | Testing Department | Total |
Overhead | $570,000 | $130,000 | $700,000 |
Direct Labor Hours | 142,500 | 32,500 | 175,000 |
Machine Hours | 32,000 | 65,000 | 97,000 |
Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August is as follows:
| Assembly Department | Testing Department | Total |
Overhead | $42,000 | $12,000 | $54,000 |
Direct Labor Hours | 13,500 | 2,430 | 15,930 |
Machine Hours | 4,020 | 11,000 | 15,020 |
Refer to Figure 5-3. Mitchell decides to continue using departmental overhead rates. If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job?
| $22 | |
| $20 | |
| $28 | |
| $50.54 | |
| none of these |
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