QUESTION 2 The Assembly department uses a departmental overhead rate of $35 per

ID: 2413744 • Letter: Q

Question

QUESTION 2 The Assembly department uses a departmental overhead rate of $35 per machine hour The Sanding department uses a departmental overhead rate of $20 per direct labor hour Job 603 used the following Direct Labor Hours, and Machine Hours in the two departments Direct Labor Hours Used Machine Hours Used The cost of direct labor is $30 per direct labor hour, and the cost of direct materials used by Job 603 is $1.400 How much manufacturing overhead would be allocated to Job 603 using departmental overhead rates What was the TOTAL COST of Job 603 using departmental overhead rates to allocate manufacturing overhead? 10 O a $1,850 b s2.240 ° C. S1.790 d. $2.170

Explanation / Answer

Direct Material

1400

Direct Labour:-

Assembly Dept (30 * 8 hrs)

240

Sanding Dept (30 * 5 hrs)

150

Overhead:-

Assembly Dept (35 * 10 hrs)

350

Sanding Dept (20 * 5 hrs)

100

Total Cost

2240

Option B is correct