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27. The overhead costs shown are overhead costs prior to allocation. The service department costs are allocated to production
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Answer #1

Shaping department overheads = $60,000

Total machine hours = 10,000

Overhead rate for Shaping department = Shaping department overheads/ Total machine hours

= 60,000/10,000

= $6 per machine hour

Machine hours used on Job 599 = 3,000

Overhead assigned to Job 599 = Machine hours used on Job 599 x Overhead rate for Shaping department

= 3,000 x 6

= $18,000

Correct option is A.

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