Question
Husky Company has two departments, Assembly (A) and Packaging (P). Overhead is applied based on budgeted direct labour cost in Assembly, and budgeted machine hours
Husky Company has two departments, Assembly (A) and Packaging (P). Overhead is applied based on budgeted direct labour cost in Assembly, and budgeted machine hours in Packaging. The following additional information is available.
Budgeted AmountsAssemblyPackaging
Direct labour cost $180,000$165,000
Factory overhead$225,000$180,000
Machine hours51,000 hr.40,000 hr.
Actual data for Job #10AssemblyPackaging
Direct materials used$10,000$16,000
Direct labour cost$11,000$14,000
Machine hours5,000 hr.3,000 hr.
Required:
a.Compute the budgeted factory overhead cost allocation rate for Assembly. (6 points)
b.Compute the budgeted factory overhead cost allocation rate for Packaging. (6 points)
c.What is the total overhead cost applied to Job 10? (6 points)
d.If Job 10 consists of 50 units of product, what is the total cost per unit of this job? (7 points)
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