Homework Answers
B.$132,000.
department M overhead rate = factory overhead / direct labor
=>624,000 / 208,000
=>$3 per direct labor dollar.
department A overhead rate = $408,000 / 816,000
=>$0.50 per direct labor dollar.
now the total cost of job 432.
| direct material | 38,000 |
| direct labor (16,000+20,000) | 36,000 |
| overhead of dept M (16,000*$3) | 48,000 |
| overhead of dept A (20,000*$0.50) | 10,000 |
| Total | $132,000 |
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