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ValentinkaMS [17]
3 years ago
7

Tillman Corporation uses a Job Order Costing system and has two production departments--Molding and Assembly. The company applie

s manufacturing overhead to production orders on the basis of direct labor costs. Separate departemental predetermined overhead rates are used. Budgeted manufacturing costs for the year are as follows: Annual Budget (Estimates) Molding Assembly Direct Materials $700,000 $100,000 Direct Labor $200,000 $800,000 Manufacturing Overhead $600,000 $400,000 If Job 432 reports $25,000 in direct materials and total direct labor of $20,000 ($8,000 in Molding and $12,000 in Assembly), what is the total cost for Job 432?
A. $55,000
B. $65,000
C. $75,000
D. $50,000?
Business
1 answer:
Serga [27]3 years ago
8 0

Answer:

C. $75,000

Explanation:

Departmental OH Rate                Molding    Assembly

Direct Labor                                  200000    800000  

Manuf. OH                                     600000     400000  

Manuf. OH to Direct Labor Ratio 300% 50%

                                                                       Molding  Assembly  Total

Materials                                                                                           25000

Direct Labor                                                      8000       12000    20000

Applied Manuf. OH [Direct labor * OH Rate]   24000     6000     30000

Total cost for Job 432                                                                      75000

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