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bernie2981 bernie2981
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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 542 is $1,400.

What was the total cost of Job 542 if James Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $2,240
B) $2,170
C) $1,790
D) $1,850
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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