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Main Street Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production
Main Street Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates: (Click the icon to view the overhead rates.) Job 375 used the following direct labor hours and machine hours in the two manufacturing departments: (Click the icon to view the resources used for Job 375.) Read the requirements. 1. How much manufacturing overhead should be allocated to Job 375? Calculate the total manufacturing overhead for the job by using a formula for each department's overhead amount and then adding both amounts together. First determine the formula and overhead for the Cutting Department. Cutting Department machine hours xFinishing Department direct labor hours] = Cutting Department overhead 175 100 75 Data table Cutting Department: Finishing Department: $10 per machine hour $15 per direct labor hour Data table JOB 375 Finishing Cutting Department Department Direct Labor Hours... 6 5 Machine Hours 10 4 Print Done Requirements 1. How much manufacturing overhead should be allocated to Job 375? 2. Assume that direct labor is paid at a rate of $26 per hour and Job 375 used $2,400 of direct materials. What was the total manufacturing cost of Job 375? Print Done
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