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X Company has two production departments, A and B. At the start of 2019, the following budgeted cost information was available: Overhead Department A $520,000
X Company has two production departments, A and B. At the start of 2019, the following budgeted cost information was available:
Overhead | |
Department A | $520,000 |
Department B | $190,000 |
The following activity information is for X Company's only two jobs, Job 11 and Job 22, both of which were started and completed during the year:
Job 11 | Job 22 | |
Direct labor hours in Department A | 1,750 | 912 |
Direct labor hours in Department B | 214 | 1,114 |
Total direct labor hours | 1,964 | 2,026 |
Machine hours in Department A | 2,120 | 2,520 |
Machine hours in Department B | 1,780 | 1,520 |
Total machine hours | 3,900 | 4,040 |
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 was the allocation to Job 22 (round overhead rate(s) to two decimal places)?
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