Question

departmental 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:	$ 8$8 per machine hour
Finishing​ Department:	$ 12$12 per direct labor hour

Job

112112

used the following direct labor hours and machine hours in the two manufacturing​ departments:

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​(Click the icon to view the resources used for Job 112​.)

	Cutting	Finishing
JOB 112	Department	Department
Direct Labor Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6	10
Machine Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6	7

1.	How much manufacturing overhead should be allocated to Job 112​?
2.	Assume that direct labor is paid at a rate of $ 23 per hour and Job 112 used $2,250 of direct materials. What was the total manufacturing cost of Job 112​?

1. How much manufacturing overhead should be allocated to Job 112​?

Calculate the total manufacturing overhead for the job by using a formula for each​ department's overhead amount and then adding both amounts together. First determine the formula and overhead for the Cutting Department.

		x		=	Cutting Department overhead
		x		=

Next determine the formula and overhead for the Finishing Department.

		x		=	Finishing Department overhead
		x		=

The total manufacturing overhead for 112 is $

.

2. Assume that direct labor is paid at a rate of $ 23 per hour and Job 112 used $2,250 of direct materials. What was the total manufacturing cost of Job 112​?

Complete the table below to compute the total manufacturing cost of Job 112.

Direct materials
Direct labor		hours	x		rate per hour
Manufacturing overhead
Total job cost

Answer 1

1.

Overhead rate	$\times$	Machine hours	=	Cutting department overhead
$8	$\times$	6	=	$48

Overhead rate	$\times$	Direct labor hours	=	Finishing department overhead
$12	$\times$	10	=	$120

The total manufacturing overhead for Job 112 is $168

2.

Direct materials					$2,250
Direct labor	16	x	$23	rate per hour	368
Manufacturing overhead					168
Total job cost					$2786