Answer:
a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours
Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours
b. Journal Entries
S/N Account Titles Debit Credit
1 Inventory - Raw material $110,000
Account Payable $110,000
2 Work in process $32,500
Manufacturing overhead $7,500
Inventory - Raw materials $40,000
3 Work in process $52,500
Manufacturing overhead $11,000
Materials control $63,500
4 Manufacturing overhead $17,250
Leasehold payable $16,250
Utilities payable $1,000
5. WIP Control (14,375*800) $11,500
Manufacturing overhead allocation $11,500
c. Particulars Dep 100 Dep 200 Total
Direct materials $32,500 $13,500 $46,000
Direct labour $52,500 $13,500 $106,000
Manufacturing overhead $35,750 $18,750 $54,500
(11,000+7,500+16,250+1,000
+9,000+4,750+3,750+1,250)
Total Cost of Job A $120,750 $85,750 $206,500
