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The following is taken from Jeffers Company's internal records of its factory with two operating departments. The cost drver for Indirect labor is direct labor
The following is taken from Jeffers Company's internal records of its factory with two operating departments. The cost drver for Indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept. 1 using activity-based costing. (Round overhead percentages to two decimal places.) Direct Labor $50,000 30,000 $80,000 Machine Use Hours 3, 700 2,900 6,600 Gazzo Operating Dept. 1 Operating Dept. 2 Totals , Skipped Factory overhead costs Rent and utilities Indirect labor Depreciation Equipment $31,100 21,200 19, 200 $71,500 Total factory overhead
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