Question
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has twodepartments: Assembly and Sanding. The Assembly Department uses a
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has twodepartments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $ 45
$45 per machinehour, while the Sanding Department uses a departmental overhead rate of $ 30
$30 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the twodepartments:
Actual results
Assembly
Department
Sanding
Department
Direct labor hours used
7
7
7
7
Machine hours used
8
8
7
7
The cost for direct labor is $ 40
$40 per direct labor hour and the cost of the direct materials used by Job 542 is $ 1 comma 200
$1,200. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturingoverhead?
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