Question
The following information is available pertaining to Iris Division, that uses a plant-wide overhead rate based on machine hours: Mixing Dept. Finishing Dept. Total Overhead
The following information is available pertaining to Iris Division, that uses a plant-wide overhead rate based on machine hours:
| Mixing Dept. | Finishing Dept. | Total |
Overhead | $60,000 | $150,000 | $210,000 |
Direct labor-hours | 7,500 | 2,500 | 10,000 |
Machine-hours | 2,500 | 7,500 | 10,000 |
Production information pertaining to Job 101:
| Mixing Dept. | Finishing Dept. | Total |
Prime costs | $10,000 | $ 0 | $10,000 |
Direct Labor-hours | 250 | 0 | 250 |
Machine-hours | 10 | 10 | 20 |
Units produced | 500 | 0 | 500
If the mixing department overhead was allocated using direct labor hours as a cost driver to produce the overhead rate and the finishing department chose to use machine hours to set their overhead rate, what amount of total overhead costs would be allocated to Job 101? |
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