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Jung's company produces clothes and uses machine hours as the allocation base to allocate manufacturing overhead costs in Department 1 and direct labour costs in
Jung's company produces clothes and uses machine hours as the allocation base to allocate manufacturing overhead costs in Department 1 and direct labour costs in Department 2 to the various job contracted during the year. The company uses a normal costing system. Estimates are provided for the year for the company and actual amounts are given for Job 334 which required the production of dance dresses. Direct materials Direct labour Manufacturing overhead costs Machine hours A A A Company budget Job 334 Department 1 Department 2 actual costs 44,000 20,000 1,000 11,000 10,000 200 60,000 40,000 80,000 1,200 What is the overhead allocation rate ($/cost allocation base) in Department 1? What is the overhead allocation rate ($/cost allocation base) in Department 2? What is the total cost of Job 334 under normal costing
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