Question
Kindly assist me. Can you Kindly show ALL workings please. 1) Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products.
Kindly assist me. Can you Kindly show ALL workings please.
1) Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:
Machining Assembly
Direct labor-hours 60,000 70,000
Machine-hours 20,000 30,000
Direct labor cost $450,000 $750,000
Manufacturing overhead costs $300,000 $210,000
The accounting records of the company show the following data for Job #316:
Machining Assembly
Direct labor-hours 120 75
Machine-hours 60 5
Direct material cost $350 $100
Direct labor cost $350 $450
Required:
A) For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining, and Assembly Departments?
B) What amount of manufacturing overhead costs will be allocated to Job #316?
C) What are the total manufacturing costs of Job #316?
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