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‼!
Apple Valley Corporation uses a job cost system and has two production departments A and B....
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cost system and has two production departments, A and B. Budgeted
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$18,000 Department B $12,000 $30,000 Apple Valley applies
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