Question3

T-Shirt Co. makes two products: A and B. In the cutting department, budgeted information is as follows:

Budgeted manufacturing overhead: $400,000

Budgeted machine hours: 80,000

Budgeted units produced: 50,000

The company allocates overhead based on units produced. The actual number of machine hours spent on product B is 30,000 and 10,000 units of product B are produced. How much is the manufacturing overhead of product B in the cutting department?

Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows:

Budgeted indirect labor costs in the workshop: $300,000

Budgeted depreciation expenses of equipment: $100,000

Budgeted direct labor costs: $100,000

Budgeted units produced: 50,000

The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of equipment based on units produced. The actual direct labor costs for productB are $40,000 and 10,000 units of product B are produced. How much is the manufacturing overhead of product B in the folding department?