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Garcia, Incorporated, uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining

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Garcia, Incorporated, uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated, in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: The data that follow pertain to job number 775 , the only job in production at year-end. Selling and administrative expense amounted to $2,500,000. PR 3-48 (Algo) Part 7 Comment on the appropriateness of the company's cost drivers... 7. Comment on the appropriateness of the company's cost drivers (l., the use of machine hours in Machining and direct-labor cost in Assembly)

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