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X Company has two production departments, A and B. At the start of the year, the following budgeted information is available: Department A Overhead $1,
X Company has two production departments, A and B. At the start of the year, the following budgeted information is available: Department A Overhead $1, 700,000 Direct labor hours 40,000 Machine hours 120,000 Department B Overhead $1, 900,000 Direct labor hours 40,000 Machine hours 140,000 The following information is for two specific jobs, Job 111 and Job 222, that were completed during the year: Department A Department B Job 111 Direct labor hours 849 228 Machine hours 1, 090 850 Job 222 Direct labor hours 500 530 Machine hours 1, 200 790 Using a plant wide allocation system with direct labor hours as the cost driver, what is the allocation to Job 111 (round overhead rates to the nearest cent)? ____________ Using a departmental allocation system with direct labor hours as the cost driver in Department A and machine hours as the cost driver in Department B, what is the allocation to Job 111 (round overhead rates to the nearest cent)? ___________
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