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Megan Company has two departments, X and Y. Overhead is applied based on direct-labor hours in Department X and machine hours in Department Y .

  1. Megan Company has two departments, X and Y. Overhead is applied based on direct-labor hours in Department X and machine hours in Department Y. The following additional information is available:
BUDGETED AMOUNTS
Department X Department Y
Direct-Labor Hours 18,000 16,500
Machine Hours 51,000 40,000
Factory Overhead $225,000 $180,000

Actual Data for Job #10

Department X Department Y
Direct materials $10,000 $16,000
Direct-labor cost $11,000 $14,000
Machine hours 5,000 3,000
Direct-labor hours 1,100 1,400

Required:

1. Compute the budgeted factory-overhead rate (i.e., the $ rate per activity base hour, etc.) for Department X.

2. Compute the budgeted factory-overhead rate (i.e., the $ rate per activity base hour, etc.) for Department Y.

3. What is the total overhead cost of Job #10?

4. What is the total cost of Job #10?

5. If Job 10 consists of 50 units of product, what is the unit cost of this job?

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