Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 .
- 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started