Question

Teagan Company uses Departmental Overhead allocation to allocate its manufacturing overhead costs. It has identified two departments: Machining & Assembly. The Machining department allocates overhead using machine hours, and the Assembly department allocates overhead using direct labor hours. It has accumulated the following data for 2018 Machining Department estimated manufacturing overhead $670,000 Assembly Department esimated manufacturing overhead: $450.000 Total estimated overhead costs $1,120,000 Estimated machine hours in the machining department Estimated direct labor hours in the assembly department 10,000 hours 15.000 hours The following shows the amount of machine hours and direct labor hours incurred by Job 601 within each department Machining Department 9 Machine Hours 4 DL hours Assembly Department: 15 DL hours What is the amount of total allocated overhead for Job 601 O A 5603

Answer 1

		Cost	Hours
Machining	Machine hours	$670,000	10,000	$67.00	Per machine hours	(670,000/10,000)
Assembly	Direct labor hours	$450,000	15,000	$30.00	Per direct labor hours	(450,000/15,000)
		$1,120,000
#job 601 cost
	Machining	9*67	$603
	Assembly	15*30	$450
		Total overhead allocated	1,053

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