The Port Furniture Company manufactures tables. In March 2017, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department A and 8,000 direct manufacturing labour-hours in Department B. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job X, the actual costs incurred in the two departments were as follows:

Financial Information for Job X
		Department A		Department B
Direct materials purchased on account		$ 110,000.00		$ 177,500.00
Direct materials used		$ 32,500.00		$ 13,500.00
Direct labour		$ 52,500.00		$ 53,500.00
Indirect labour		$ 11,000.00		$ 9,000.00
Indirect materials used		$ 7,500.00		$ 4,750.00
Lease on equipment		$ 16,250.00		$ 3,750.00
Manufacturing Utilities		$ 1,000.00		$ 1,250.00

Required:

3a. Determine the budgeted manufacturing overhead rate for each department.

3b. Prepare necessary journal entries to summarise the March transactions for Department A.

3c. Determine the total cost of Job X.

3d. What are some of the major cost objects that managers often focus on in companies using job costing? Use the textbook or other references to support your answers.

Answer rating: 100% (QA)

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