Reference no: EM13568835

                                                    Alpha               Beta

Manufacturing overhead           $240,000       $300,000

Units                                         10,000              20,000

Direct labor hours                      6,000              7,500

Direct Labor cost                       60,000            75,000

Material cost                             $150,000       $400,000

At the end of the year, Alpha Co. had incurred overhead of $221,000 and had produced 9,800 units using 6,100 ($61,00) direct labor hours and materials costing $147,000.

Beta inc. had incurred overhead of $316,500 and had produced 20,500 units using 7,550 ($75,500) direct labor hours and materials costing $411,000.

Required

A. Compute the (a) budget and (b) actual manufacturing overhead cost rates.

B. What is the job cost of the Alpha Co. and Bate Inc. using (a) normal costing and (b) actual costing?