Question
X Company has two production departments, A and B. At the start of 2018, the following budgeted cost information was available: Department A$180,000 Department B$220,000
X Company has two production departments, A and B. At the start of 2018, the following budgeted cost information was available:
Department A$180,000 Department B$220,000
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:
Direct labor hours in Department A | 1,672 | 656 |
Direct labor hours in Department B | 482 | 1,378 |
Total direct labor hours | 2,154 | 2,034 |
Machine hours in Department A | 2,000 | 2,500 |
Machine hours in Department B | 1,740 | 1,520 |
Total machine hours 3,730 4,000
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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