Reference no: EM132501234

Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows:

                            Dept. M        Dept. A

Direct materials$701,000 $101,000

Direct labor 201,000 802,000

Factory overhead 603,000 401,000

The actual direct materials and direct labor costs charged to Job. No. 432 during the year were as follows:

Direct materials $26,000

Direct labor:

Department M$9,000

Department A 13,000 22,000

Question 1: Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be: