Question
Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30
Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department:
|
| Fabrication | Assembly |
| Machine-hours................... | 40 | 12 |
| Direct labor-hours.............. | 3 | 25 |
What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year?
a. | $1,200 | |
b. |
$1,500
| |
c. |
$1,560
| |
d. | $1,734 |
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