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 $ 20 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two​ departments: Actual results Assembly Department Sanding Department Direct labor hours used 7 5 Machine hours used 12 6 The cost for direct labor is $ 30 per direct labor hour and the cost of the direct materials used by Job 542 is $ 1 comma 600. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing​ overhead?

Answer 1

Answer:

Explanation:The total cost of job 542 is calculated thus:

Direct labor hours used 75 x $30

Machine hours used is 126 x$1,600

Direct labour hour used is 75 x $30

= $2,250

Machine hours used is 126 x $1,600

= $201,600

Total cost of job 542 is $2,250 + $201,600 = $203,850