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Question - Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:
Machining
Assembly
Direct labor-hours
60,000
70,000
Machine-hours
20,000
30,000
Direct labor cost
$450,000
$750,000
Manufacturing overhead costs
$300,000
$210,000
The accounting records of the company show the following data for Job #316:
120
75
60
5
Direct material cost
$350
$100
$450
Required -
A) For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining, and Assembly Departments?
B) What amount of manufacturing overhead costs will be allocated to Job #316?
C) What are the total manufacturing costs of Job #316?
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