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Please help with this online practice problem for my management accounting class. (The data table on the left hand side of the page is the
Please help with this online practice problem for my management accounting class. (The data table on the left hand side of the page is the estimates for the current year; the box on the right is teh cost record for Job 511.)
The Molinero Company uses a job order costing system at its plant in Green Bay, Wisconsin. The plant Requirements has a machining department and a finishing department. The company uses two cost driver rates for (a) Determine the two departmental cost driver rates. allocating manufacturing overhead costs to job orders: one on the basis of machine hours for allocating (b) Last month, cost records for job 511 show the following: machining department overhead costs and the other on the basis of direct labor cost for allocating the EEE (Click the icon to view the cost records.) finishing department overhead costs. Estimates for the current year follow Determine the total costs charged to job 511 (Click the icon to view the estimates.) (c) Explain why Molinero Company uses two different cost driver rates in its job costing system. Requirement (a) Determine the two departmental cost driver rates. Identify the formula, then calculate the cost driver rate for each department. (Enter your answers as whole numbers.) Overhead cost Number of cost driver units Cost driver rate Machining department Job 511 cost record of DL cost Data Table of OH cost. per labor hour per machine hour Machining Department Finishing Department Machining Department Finishing Department Direct materials cost 9,000 1,000 475,000 248,000 Manufacturing overhead costs 900 lwer. Direct labor cost 500 1,600 25,000 Machine hours Direct labor hours 11 3,500 Direct labor hours 19,000 Clear All Machine hours 60 190,000 Direct labor cost 400,000
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