Question
James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses
James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $ 55per machine hour, while the Sanding Department uses a departmental overhead rate of $ 15per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:
Actual results | Assembly Department | Sanding Department |
Direct labor hours used | 6 |
3
Machine hours used 9 | 5 |
The cost for direct labor is $ 30per direct labor hour and the cost of the direct materials used by Job 603 is $ 1,300.How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
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