CALCULATE A DEPARTMENTAL OVERHEAD RATE FOR DEPARTMENT A & B BASED ON MACHINE HOURS. ABC Inc. is

CALCULATE A DEPARTMENTAL OVERHEAD RATE FOR DEPARTMENT A & B BASED ON MACHINE HOURS.

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ABC Inc. is developing departmental manufacturing overhead application rates for the company's manufacturing departments. The budgeted costs and hours for each department for the period are shown below. Also shown, are the actual costs and hours for Job #1. Departments Company-wide Dept A Dept B Total Direct materials Direct labor 20,000 $ 2,000 $ 22,000 10,000 7,500 17,500 Indirect materials 1,000 $ 1,000 $ 2,000 Indirect labor 18,000 5,000 23,000 Factory manager's salaries 5,000 5,000 10,000 Factory rent 6,000 2,500 8,500 Repairs and maintenance 15,000 3,000 18,000 Total budgeted costs $ 75,000 $ 26,000 $ 101,000 Total machine hours for the period 1,000 500 1,500 Actual Costs recorded for Job #1: Direct materials needed for Job #1 $ Direct labor needed for Job #1 6969 2,000 $ 200 $ 2,200 $ 400 $ 150 $ 550 Actual machine hours for Job #1 30 30 40 70 70 ABC Inc. is developing departmental manufacturing overhead application rates for the company's manufacturing departments. The budgeted costs and hours for each department for the period are shown below. Also shown, are the actual costs and hours for Job #1. Departments Company-wide Dept A Dept B Total Direct materials Direct labor 20,000 $ 2,000 $ 22,000 10,000 7,500 17,500 Indirect materials 1,000 $ 1,000 $ 2,000 Indirect labor 18,000 5,000 23,000 Factory manager's salaries 5,000 5,000 10,000 Factory rent 6,000 2,500 8,500 Repairs and maintenance 15,000 3,000 18,000 Total budgeted costs $ 75,000 $ 26,000 $ 101,000 Total machine hours for the period 1,000 500 1,500 Actual Costs recorded for Job #1: Direct materials needed for Job #1 $ Direct labor needed for Job #1 6969 2,000 $ 200 $ 2,200 $ 400 $ 150 $ 550 Actual machine hours for Job #1 30 30 40 70 70