Using a departmental allocation system with direct labor

Reference no: EM13577181

X Company has two production departments,A and B.At the start of the year,the following budgeted information is available:

Department A
Overhead $4,100,000
Direct labor hours 50,000
Machine hours 110,000
Department B
Overhead $1,900,000
Direct labor hours 60,000
Machine hours 130,000

The following information is for two specific jobs,Job 111 and Job 222,that were completed during the year:

Department A Department B
Job 111
Direct labor hours 735 222
Machine hours 1,070 840
Job 222
Direct labor hours 337 520
Machine hours 1,290 700

1.Using a plantwide allocation system with direct labor hours as the cost driver,what is the allocation to Job 222?
2.Using a departmental allocation system with direct labor hours as the cost driver in Department A and machine hours as the cost driver in Department B,what is the allocation to Job 222?

Reference no: EM13577181

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