Use the information below to answer the following question(s):
Bond 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 $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 542 used the following direct labour hours and machine hours in the two departments:
The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 542 is $1,200.
-What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $1,375
B) $1,425
C) $1,500
D) $1,600

Question

Use the information below to answer the following question(s):
Bond 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 $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 542 used the following direct labour hours and machine hours in the two departments:
  The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 542 is $1,200.
-What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $1,375 
B) $1,425 
C) $1,500 
D) $1,600

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following question(s):
Bond 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 $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour. Job 542 used the following direct labour hours and machine hours in the two departments:
  The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 542 is $1,200.
-What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $1,375 
B) $1,425 
C) $1,500 
D) $1,600

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