Reference no: EM13792226
X Company has two production departments, A and B. At the start of the year, the following budgeted information is available:
Department A
Overhead $7,100,000
Direct labor hours 50,000
Machine hours 110,000
Department B
Overhead $2,200,000
Direct labor hours 60,000
Machine hours 120,000
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 768 116
Machine hours 1,040 900
Job 222
Direct labor hours 399 630
Machine hours 1,280 770
1. Using a plant wide allocation system with direct labor hours as the cost driver, what is the allocation to Job 222 (round overhead rates to the nearest cent)?
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 (round overhead rates to the nearest cent)?
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