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bernie2981 bernie2981
wrote...
Posts: 3810
8 years ago
James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: 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 results   Assembly Department   Sanding Department
Direct labor hours used   8   5
Machine hours used   10   7

The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400.

How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
A) $380
B) $715
C) $450
D) $390
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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8 years ago
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bernie2981 Author
wrote...
8 years ago
Answers my question perfectly.
wrote...
4 years ago
thank you
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