Job costing

ABC Company uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:

Dep. A. Dep. B

Direct material $700 000. $100 000

Direct labour $200 000 $800 000

Manufacturing overhead $600 000. $400 000 The actual material and labor costs charged to Job #4 were as follows:

Total

Direct materials: $25,000

Direct labor: Department A $ 8,000

Department B $12,000

$ 20,000

Company applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

Calculate For Department A, the manufacturing overhead allocation rate. For Department B, the manufacturing overhead allocation rate Total manufacturing overhead costs allocated to Job #4