Question: Quality Furniture uses departmental overhead rates rather than a plantwide

Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company’s two production departments have the following departmental overhead rates:
Cutting Department:...... $10 per machine hour
Finishing Department:...... $17 per direct labour hour
Job 392 used the following direct labour hours and machine hours in the two manufacturing departments:
1. How much MOH should be allocated to Job 392?
2. Assume that direct labour is paid at a rate of $25 per hour and Job 392 used $2,500 of direct materials. What was the total manufacturing cost of Job 392?

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  • CreatedApril 30, 2015
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