Compute the annual manufacturing cost-allocation rate

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Problem - The Polish Factory manufactures natural resources in Ireland. At the beginning of 20XX, the accountant provided the following estimates associated with Department A and Department B for the coming year:

According to the reports provided by the manager at the Polish Factory, the following data was presented to represent a job that was completed during the year:

 

Department A

Department B

Direct labor hours

150

80

Machine-hours

50

8

Direct material cost

$275

$180

Direct labor cost

$75

$350

Assume that the Polish Factory uses departmental cost driver rates to allocate manufacturing overhead to products. The manufacturing overhead costs are allocated on the basis of machine-hours in Department A on the basis of direct labor-hours in Department B.

Required - Please help me, and show work.

1. Compute the annual manufacturing cost-allocation rate for Department A.

2. What amount of overhead should be allocated to the job?

3. What are the total manufacturing costs associated with the job?

Reference no: EM132461643

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