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The Spice Saga has two production departments, Assembly and Finishing. The following information was used to calculate overhead application rates: Estimated overhead Direct labor
The Spice Saga has two production departments, Assembly and Finishing. The following information was used to calculate overhead application rates: Estimated overhead Direct labor hours Machine hours Assembly $ 976,000 50,000 16,000 Finishing $ 488,000 30,000 8,000 Total $ 1,464,000 80,000 24,000 Overhead information for Job #687 is as follows: Direct labor hours Machine hours Assembly Finishing 100 125 30 18 Total 250 50 Question a. Assume that The Spice Saga uses direct labor hours to apply overhead in both production departments. How much overhead will be applied to Job #687? Note: Round your answer to 2 decimals. b. Assume that The Spice Saga uses machine hours to apply overhead in both production departments. How much overhead will be applied to Job #687? Note: Round your answer to 2 decimals. c. Assume that The Spice Saga uses direct labor hours to apply overhead in the Finishing department and machine hours to apply overhead in the Assembly department. How much overhead will be applied to Job #687? Note: Round your answer to 2 decimals. Answer
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