Question

Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour, Job 003 used the following direct labor hours and machine hours in the two departments Assembly Sanding Actual results Department Department Direct labor hours used Machine hours used The cost for direct laboris $35 per direct labor hour and the cost of the direct materials used by Job 803 is $1,300. How much manufacturing overhead would be allocated to Job 603 vang the departmental overhead rates? O A $315 OB. $700 C. $420 OD $430

Answer 1

Page $35 per machine hour = $ 25 per direct labor hows Az Assembly Separtment Sounding Separtment Assembly Department Landing Seblaciment HOURS 8 6 OVERHEAD $280 $ 150 $ 430 Hence, OPTION - 'D': $ 430