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:

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)$1,850
B)$2,170
C)$2,240
D)$1,790

Question

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:

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?

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)$1,850 
B)$2,170 
C)$2,240 
D)$1,790

Quizplus · Accepted Answer

C)
Labor ($30 × 8 hrs)+ ($30 × 5 hrs)= $390.00
Materials = $1,400.00
Overhead
Assembly Dept.$35 × 10 hrs = $350.00
Sanding Dept.$20 × 5 hrs = $100.00
Total = $2,240.00

James Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing