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melamori03 [73]
3 years ago
7

James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two department

s: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:Actual resultsAssembly DepartmentSanding DepartmentDirect labor hours used85Machine hours used107The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 542 is $1,400.What was the total cost of Job 542 if James Industries used the departmental overhead rates to allocate manufacturing overhead?A) $1,850B) $2,170C) $2,240D) $1,790
Business
1 answer:
GREYUIT [131]3 years ago
6 0

Answer:

Total cost= $9395

Explanation:

Giving the following information:

The company has two departments: Assembly and Sanding.

The Assembly Department:

Departmental overhead rate of $35 per machine hour.

The Sanding Department:

Departmental overhead rate of $20 per direct labor hour.

Job 603:

Direct labor hours used 85

Machine hours used 107

The cost of direct labor is $30 per hour

Direct materials used= $1,400.

Total cost= direct materials + direct labor + manufacturing overhead

Total cost= 1400 + $30*85 + [(107*$35)+(85*$20)]

Total cost= 1400 + 2550 + 5445

Total cost= $9395

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