Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($32 per hour) and a di
rect hour overhead rate for the Finishing Department ($102 per hour). (Round your answer to the nearest dollar.)Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs:Setup (1,000 setup hours) $118,000Production scheduling (400 batches) 60,000Production engineering (60 change orders) 150,000Supervision (2,000 direct labor hours) 46,000Machine maintenance (12,000 machine hours) 60,000Total activity costs $434,000The following additional data were provided for Job 845:Direct materials costs $7,000Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000Setup hours 5 hoursProduction scheduling 1 batchMachine hours used (25 Milling machine hours;5 Finishing machine hours) 30 hoursProduction engineering 3 change orders
2 answers:
Answer:
<em>Job 845:</em>
<u>departamental overhead</u> $ 4,370
Total cost $ 12,370
<u>activity base overhead </u>9310
Total cost: $ 17,310
Explanation:
Job 845
Materials 7000
Labort 1,000
Milling overherad:
25 machinie hours x $32 = $ 800
Finishing overhead
35 labor hours x $102 = $ 3,570
Total cost: $ 12,370
activity base overhead:
Now we multiply by the rate:
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