Question
JimBob Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: assembly and sanding. The assembly department uses
JimBob 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 $35 per machine hour, while the sanding department uses a departmental overhead rate of $20 per 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
8
5
Machine hours used
10
7
The cost for direct labor is $30 per direct labor hour, and the cost of the direct materials used by Job 603 is $1,400.
How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
a.$450
b.$380
c.$715
d.$390
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