JimBob 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 603 used the following direct labor hours and machine hours in the two departments: The cost for direct labor is $30 per direct labor hour, and the cost of the direct materials used by Job 603 is $1,400.

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter4: Activity-based Costing
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JimBob 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 603 used the following direct labor hours and machine hours in the two departments:

The cost for direct labor is $30 per direct labor hour, and the cost of the direct materials used by Job 603 is $1,400.

 

How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?

direct labor hours used for assembly dept. -8 and for sanding dept. -5

machine hours used for assembly dept. - 10 and sanding dept. - 7

options: $450, $380, $715, $390

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