Answer:
For Department A, the manufacturing overhead allocation rate is : 300%
For Department B, the manufacturing overhead allocation rate is : 50%
Manufacturing overhead costs allocated to Job #432 : $30,000.
Explanation:
Apple Valley Corporation uses job cost system and it allocates overhead cost to job on basis of manufacturing labor cost.
1. To identify the manufacturing overhead allocation rate for department A:
(Manufacturing Overhead department A / Direct Manufacturing Labor Department A) * 100
= ($600,000 / $200,000) * 100
= 300%
2. To identify the manufacturing overhead allocation rate for department B:
(Manufacturing Overhead department B / Direct Manufacturing Labor department B) * 100
= ($400,000 / $800,000) * 100
= 50%
3. To calculate the manufacturing overhead costs allocated to Job #432:
[(Department A direct labor * Manufacturing Overhead department A) / Direct Manufacturing Labor of department A ] + [(Department B direct labor * Manufacturing Overhead department B) / Direct Manufacturing Labor of department B ]
= [( $8,000 * $600,000) / $200,000] + [( $12,000 * $400,000) / $800,000]
= $30,000.
