Calculate the overhead allocation rate for Department A

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Reference no: EM132849151

Problem - Company X has two departments, A and B. Overhead is applied based on machine hours in Department A. Overhead is applied based on direct labor hours in Department B.

Budgeted Amounts

Department A

Department B

Direct labor hours

20,000

90,000

Machine hours

10,000

50,000

Direct materials costs

$60,000

$720,000

Direct labor costs

$30,000

$840,000

Manufacturing overhead costs

$210,000

$360,000

 

The accounting records for Job M

Department A

Department B

Direct labor hours

50

100

Machine hours

110

20

Direct materials costs

$2,600

$1,400

Direct labor costs

$1,400

$1,600

Required -

1. Calculate the overhead allocation rate for Department A?

2. Calculate the overhead allocation rate for Department B?

3. Calculate the total allocated overhead cost of Job M?

4. Calculate the total cost of Job M?

Reference no: EM132849151

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