Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead

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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:

Quality Furniture uses departmental overhead rates (rather than a plantwide

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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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0176223311

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

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