Lucas 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 $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 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 $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1600.
How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
A)$675
B)$575
C)$700
D)$300

Question

Lucas 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 $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 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 $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1600.
How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
A)$675 
B)$575 
C)$700 
D)$300

Quizplus · Accepted Answer

The Answer of Lucas 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 $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 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 $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1600.
How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
A)$675 
B)$575 
C)$700 
D)$300

Lucas Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing