Whitney Furniture uses departmental overhead rates (rather than a plant wide overhead rate) to allocate its manufacturing overhead to jobs. The company’s two production departments have the following departmental overhead rates:

Cutting Department………………… $9 per machine hour

Finishing Department:………..$18 per direct labor hour

Job 484 used the following direct labor hours and machine hours in the two manufacturing departments:

__________________________________Cutting Department Finishing Department

Direct Labor Hours …………………………………………. 2………………………………………….7

Machine Hours ………………………………………………. 8………………………………………….4

1. How much manufacturing overhead should be allocated to Job 484?

2. Assume that direct labor is paid at a rate of $24 per hour and Job 484 used $2,400 of direct materials. What was the total manufacturing cost of Job 484?



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