Reference no: EM132556985

Famigo Inc. has two production departments. The company uses a budgeted departmental rate for applying overhead in which each department has its own allocation rate. Specifically, overhead is allocated based on machine hours for Department 1 and direct manufacturing labour hours for Department 2. In May, budgeted overhead was $34,500 for Department 1 and $37,500 for Department 2. Budgeted machine hours for Department 1 was 10,000 and budgeted manufacturing labour hours for Department 2 was 5,000 hours.

In May, the company completed Job 478. The job required 2,000 machine hours in Department 1 2 and 600 manufacturing labour hours in Department 2. Actual costs incurred in the two departments were as follows:

                                               Department 1                    Department 2

Direct materials purchased                 $99,000                        $159,750

Direct materials used                        $29,250                         $12,150

Direct manufacturing labour                $47,250                          $48,150

Indirect manufacturing labour               $9,900                             $8,100

Indirect materials used                          $6,750                         $4,275

Lease on equipment                               $14,625                         $3,375

Utilities                                               $900                   $1,125

Required:

Question (A) What is the budgeted indirect cost allocation rate for each department?

Question (B) What is the total cost assigned to Job 478?