QUESTION 3 (5 Marks) Lennox Company uses a job costing system. The company uses predetermined overhead rates in applying manufacturing overhead costs to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct labour cost. At the beginning of 2018, the company's management has made the following estimates for the year: Department A Department B Direct labour-hours 15,000 30,000 Machine-hours 50,000 12,000 Direct labour cost $80,000 $172,000 Manufacturing overhead 162,500 215,000 on August 1 and completed on September 15. Job 145 was initiated into production The company's cost records show the following information on the job: Department A Department B Direct labour-hours 22 40 Machine-hours 80 20 Direct material used $450 $250 120 Direct labour cost 180 REQUIRED QUESTION 3 (5 Marks) Lennox Company uses a job costing system. The company uses predetermined overhead rates in applying manufacturing overhead costs to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct labour cost. At the beginning of 2018, the company's management has made the following estimates for the year: Department A Department B Direct labour-hours 15,000 30,000 Machine-hours 50,000 12,000 Direct labour cost $80,000 $172,000 Manufacturing overhead 162,500 215,000 on August 1 and completed on September 15. Job 145 was initiated into production The company's cost records show the following information on the job: Department A Department B Direct labour-hours 22 40 Machine-hours 80 20 Direct material used $450 $250 120 Direct labour cost 180 REQUIRED QUESTION 3 (5 Marks) Lennox Company uses a job costing system. The company uses predetermined overhead rates in applying manufacturing overhead costs to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct labour cost. At the beginning of 2018, the company's management has made the following estimates for the year: Department A Department B Direct labour-hours 15,000 30,000 Machine-hours 50,000 12,000 Direct labour cost $80,000 $172,000 Manufacturing overhead 162,500 215,000 on August 1 and completed on September 15. Job 145 was initiated into production The company's cost records show the following information on the job: Department A Department B Direct labour-hours 22 40 Machine-hours 80 20 Direct material used $450 $250 120 Direct labour cost 180 REQUIRED