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StormLrd StormLrd
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6 years ago
Leonard Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Building and Inspection. The Building Department uses a departmental overhead rate of $18 per machine hour, while the Inspection Department uses a departmental overhead rate of $15 per direct labour hour. Job 611 used the following direct labour hours and machine hours in the two departments:

Actual results   Building Department   Inspection
Department
Direct labour hours used   6   2
Machine hours used   10   0

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 611 is $1,500.

What was the total cost of Job 611 if Leonard Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $1,700
B) $1,844
C) $1,880
D) $1,838
E) $1,910
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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GarretAGarretA
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