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Spritzer Company Has Two Departments: X and Y Actual Data for Job #10 Are as Follows

Question 154

Essay

Spritzer Company has two departments: X and Y. Overhead is applied based on direct- labor cost in Department X and machine hours in Department Y. The following additional information is available:  Budgeted Items  Department X Department Y Direct-labor cost $180,000$165,000 Machine hours 51,00040,000 Factory overhead $225,000$180,000\begin{array}{lll}\text { Budgeted Items } & \text { Department } X & \text { Department } Y \\\text { Direct-labor cost } & \$ 180,000 & \$ 165,000 \\\text { Machine hours } & 51,000 & 40,000 \\\text { Factory overhead } & \$ 225,000 & \$ 180,000\end{array} Actual data for Job #10 are as follows:  Department X Department Y Direct materials  Requisitioned $10,000$16,000 Direct-labor cost $11,000$14,000 M achine hours 5,0003,000\begin{array}{lll}& \text { Department } X & \text { Department } Y \\\text { Direct materials } & & \\\text { Requisitioned } & \$ 10,000 & \$ 16,000 \\\text { Direct-labor cost } & \$ 11,000 & \$ 14,000 \\\text { M achine hours } & 5,000 & 3,000\end{array} Required:
a. Compute the budgeted factory- overhead rate for Department X.
b. Compute the budgeted factory- overhead rate for Department Y.
c. What is the total overhead cost of Job 10?
d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

Correct Answer:

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a. $225,000 / $180,000 = 125%
b. $180,00...

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