question archive James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs
James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs
Subject:FinancePrice: Bought3
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 $34 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:
|
Assembly Department |
Sanding Department |
|
|
Direct labor hours used |
8 |
5 |
|
Machine hours used |
10 |
7 |
The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job 603 is $1351.
What was the total cost of Job 603 if James Industries used the departmental overhead rates to allocate manufacturing overhead?
