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Your Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours
Your Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: Direct labor cost . Manufacturing overhead ..... Direct labor-hours... Machine-hours. Dept. A S56,000 S67,200 8,000 4,000 Dept. B s33,000 S45,000 9,000 15,000 The Johnson job used 300 machine hours and incurred $5,000 of labor costs What was the total overhead applied to this jah? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS
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