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RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The
RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The following information is available for January 2018:
Fabrication | Assembly | |
Estimated Total Labor-Hours Used | 20 | 50 |
Estimated Total Machine-Hours Used | 30 | 15 |
Estimated Total Fixed Manufacturing Overhead | $6,000 | $7,000 |
Estimated Variable Manufacturing Overhead Per Labor-Hour | $20 per Labor-Hour | |
Estimated Variable Manufacturing Overhead Per Machine-Hour | $15 per Machine-Hour | |
Job A | Job B | |
Direct Materials | $22,500 | $24,500 |
Direct Labor Cost | $2,500 | $4,000 |
Actual Labor-Hours Used | ||
Fabrication | 9 | 13 |
Assembly | 23 | 28 |
Machine-Hours Used | ||
Fabrication | 13 | 18 |
Assembly | 6 | 8 |
Assume RevampScamp uses departmental predetermined overhead rates with machine-hours for Fabrication and direct labor-hours for Assembly. What was the total manufacturing overhead applied to Job A?
Multiple Choice $7,775 $5,615 $6,475 $13,988Step by Step Solution
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