Question
Harvey Company is a specialty widget manufacturer and has two processing departments as shown below. The Fabrication Department uses direct labor hours as its overhead
Harvey Company is a specialty widget manufacturer and has two processing departments as shown below. The Fabrication Department uses direct labor hours as its overhead allocation base. The Finishing Department uses machine hours as its overhead allocation base. Total estimated overhead costs for each department and estimated machine hours and direct labor hours follows:
Fabrication | Finishing | |
Estimated overhead costs | $516,000 | $940,000 |
Estimated machine hours | 40,000 | 80,000 |
Estimated direct labor hours | 120,000 | 30,000 |
Job 745 used 118 direct labor hours in Fabrication and 29 machine hours in Finishing. Determine the total manufacturing overhead costs allocated to Job 745.
(round to nearest cent)
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