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Apple Valley Corporation uses a job cost system and has two production departments A and B. Budgeted manufacturing costs for
Manufacturing overhead $800,000 $500,000 The actual material and labor costs charged to Job #432 were as follows: Total Direc
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Answer #1
Department A Department B
Manufacturing overhead (a) 800,000 500,000
Direct manufacturing labor (b) 400,000 100,000
Predetermined overhead rate (a/b) 200% of direct manufacturing labor 500% of direct manufacturing labor
Department A Department B Total
Actual direct manufacturing labor (a) 12,000 8,000
Predetermined overhead rate (b) 200% 500%
Applied manufacturing overhead (a/b) 24,000 40,000 64,000

Manufacturing overhead cost allocated to Job 432 = $64,000

Correct option is B.

Kindly comment if you need further assistance. Thanks‼!

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