Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

National Company has two departments, L and M. Overhead is applied based on direct labor cost in Department L and machine-hours in Department M. The

National Company has two departments, L and M. Overhead is applied based on direct labor cost in Department L and machine-hours in Department M. The following additional information is available:
Budgeted AmountsDepartment LDepartment M
Direct labor cost $180,000$165,000
Factory overhead$225,000$180,000
Machine-hours51,000 mh40,000 mh
Actual data for Job #19Department LDepartment M
Direct materials requisitioned$10,000$16,000
Direct labor cost$11,000$14,000
Machine-hours5,000 mh3,000 mh
Required:
a.Compute the budgeted factory overhead rate for Department L.
b.Compute the budgeted factory overhead rate for Department M.
c.What is the total overhead cost of Job 19?
d.If Job 19 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Custom Edition For National American University

Authors: Charles T. Horngren, Walter T. Harrison Jr, M. Suzanne Oliver

9th Edition

1256297585, 978-1256297581

More Books

Students also viewed these Accounting questions