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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?
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