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Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses
Lucas 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 $40 per machine hour, while the Sanding Department uses a departmental overhead rate of $10 per direct labor hour. Job 542 use the following direct labor hours and machine hours in the two departments: The cost for direct labor is $20 per direct labor hour and the cost of the direct materials used by Job 542 is $1,500. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead? A. $1,780 B. $2,180 C. $2,110 D. $1,760
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