Reference no: EM132650094
Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 8,200 machine hours in Department 1 and 5,660 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $32,000 and $27,500, respectively.
For Job 101, the actual costs incurred in the two departments were as follows:
Department 1 Department 2
Direct materials purchased on account $66,000 $106,500
Direct materials used 12,500 9,100
Direct manufacturing labour 32,500 32,200
Indirect manufacturing labour 6,600 5,400
Indirect materials used 4,500 2,850
Lease on equipment 9,750 2,250
Utilities 600 750
Job 101 incurred 1,100 machine hours in Department 1 and 400 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
Question 1. What is the budgeted indirect cost allocation rate for Department 1?
Question 2. What is the budgeted indirect cost allocation rate for Department 2?
Question 3. What is the total cost assigned to Job 101 based on normal costing?