Question

Activity-Based Costing, Lean Operations, and the Cost of Quality Use department overhead rates to allocate manufacturing overhead Offbraugh Furniture uses department overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates: Cutting Department: Finishing Department: 12 per machine hour 17 per direct labour hour Assume for Job 392 that direct labour is paid at a rate of $25 per hour and the job used $2,500 of direct materials. Job 392 used the following direct labour hours and machine hours in the two manufacturing departments: Cutting Finishing JOB 392 Department Department Direct Labour Hours Machine Hours 8 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Requirements 1 How much manufacturing overhead should be allocated to Job 392? 2 What was the total manufacturing cost of Job 392? a. Check your spelling carefully and do not abbreviate.

Answer 1

Answer is given below. please link the excel sheet accordingly

Allocation of Manufacturing overhead from Cutting Department Allocation of Manufacturing overhead from Finishing Department, Total Manufacturing overhead allocated to Job 392 $96 (8 Machine hours * $12) $102 (6 Direct Labor hours * $17) $1981 Direct Material Direct Labor Manufacturing Overhead applied Total Job Cost $2,500 $200 (8 hours * $25) $198 $2,898