Question
QUESTION1: Ford Company has two departments, DEPT A and DEPT B. Overhead is applied based on direct labor cost in Department DEPT A and machine-hours
QUESTION1: Ford Company has two departments, DEPT A and DEPT B. Overhead is applied based on direct labor cost in Department DEPT A and machine-hours in Department DEPT B. The following additional information is available: Budgeted Amounts DEPT A DEPT B Direct labor cost $200,000 $165,000 Factory overhead $300,000 $180,000 Machine-hours 51,000 mh 30,000 mh Actual data for Job #10 DEPT A DEPT B Direct materials requisitioned $10,000 $16,000 Direct labor cost $11,000 $14,000 Machine-hours 5,000 mh 3,000 mh Required: 1. What is the total overhead cost of Job 10? 2. If Job 10 consists of 50 units of product, what is the unit cost of this job? 3. Are there any actions can Ford apply to improve overhead cost calculation accuracy?
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