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Saved Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs The company has two departments. Assembly and Sanding The Assembly Department
Saved Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs The company has two departments. Assembly and Sanding The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour Job 396 used the following direct labour hours and machine hours in the two departments Assembly Sanding Actual results Department Department Direct labour hours used 4 Machine hours used 9 3 5 The cost for direct labour is $25 per direct labour hour and the cost of the direct merials used by Job 396 is $1,200 What was the total cost of Job 396 it Babcock Industries used the departmental overhead rates to allocate manufacturing overhead? $1,375
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