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Ms. Rolle places an order with ABC Inc. for the purchase of bikes to ship to Hong Kong. This job passes through three Departments

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Ms. Rolle places an order with ABC Inc. for the purchase of bikes to ship to Hong Kong. This job passes through three Departments of ABC Inc. ABC Inc. purchases materials for $15,000.00. The job will be sold for $32,575 and the information on costs is given in the next slide. Dept X Dept Y Dept Z Materials Issued $8,000 $1,000 $500 for Job Direct Labor 1,000 2,000 5,000 Rate of Direct $1.00 $1.50 $2.00 Labor per hour Scrap materials $1,000 $150 $100 Total overhead for $10,000 $15,000 $25,000 the departments Total labor hours 10,000 for the 30,000 40,000 departments

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