Question
im's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and
im's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:
| Department 1 | Department 2 |
Direct materials purchased on account | $66,000 | $106,500 |
Direct materials used | 19,500 | 8,100 |
Direct manufacturing labour | 31,500 | 32,100 |
Indirect manufacturing labour | 6,600 | 5,400 |
Indirect materials used | 4,500 | 2,850 |
Lease on equipment | 9,750 | 2,250 |
Utilities | 600 | 750 |
Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
What is the total cost assigned to Job 501 based on normal costing?
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