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Montenegro company is in the business of producing custom, luxury tophats for fine gentlemen and gentlewomen across the Balkans. Use the following information to
Montenegro company is in the business of producing custom, luxury tophats for fine gentlemen and gentlewomen across the Balkans. Use the following information to answer questions related to Montenegro. Montenegro expects indirect labor to be $200,000 and indirect materials to be $600,000 for the production period. Other indirect production costs are $60,000, and CFO pay is $35,100. Montenegro has two departments: Fabrication and Assembly. Montenegro expects $350,000 of overhead in Fabrication and the remainder in Assembly. Montenegro uses direct labor hours as its plant-wide cost driver. Montenegro expects a total of 200,000 hours of direct labor, with 50,000 hours in Fabrication. Job E103 has 10,000 hours of direct labor, 5,000 of which is in Fabrication and 5,000 in Assembly. Using Departmental cost Allocation, determine the amount of overhead to allocate to job E103.
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