Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 2 Jung's company produces clothes and uses machine hours as the allocation base to allocate manufacturing overhead costs in Department 1 and direct labour
QUESTION 2 Jung's company produces clothes and uses machine hours as the allocation base to allocate manufacturing overhead costs in Department 1 and direct labour costs in Department 2 to the various job contracted during the year. The company uses a normal costing system. Estimates are provided for the year for the company and actual amounts are given for Job 334 which required the production of dance dresses. Direct materials Direct labour Manufacturing overhead costs Machine hours $ $ $ Company budget Job 334 Department 1 Department 2 actual costs 44.000 20,000 1.000 11,000 10,000 200 30,000 40,000 100,000 1,200 What is the overhead allocation rate ($/cost allocation base) in Department 1? What is the overhead allocation rate ($/cost allocation base) in Department 2? What is the total cost of Job 334 under normal costing
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started