Question: Need help finding the budgeted indirect cost allocation rate for each department and the total cost assigned to Job 478. Famigo Inc. has two production
Need help finding the budgeted indirect cost allocation rate for each department and the total cost assigned to Job 478.


Famigo Inc. has two production departments. The company uses a budgeted departmental rate for applying overhead in which each department has its own allocation rate. Specifically, overhead is allocated based on machine hours for Department 1 and direct manufacturing labour hours for Department 2. In May, budgeted overhead was $34,500 for Department 1 and $37,500 for Department 2. Budgeted machine hours for Department 1 was 10,000 and budgeted manufacturing labour hours for Department 2 was 5,000 hours. In May, the company completed Job 478. The job required 2,000 machine hours in Department 1and 600 manufacturing labour hours in Department 2. Actual costs incurred in the two departments were as follows: Department 1 Department 2 Direct materials purchased $99,000 $159,750 Direct materials used $29,250 $12,150 Direct manufacturing labour $47,250 $48,150 Indirect manufacturing labour $9,900 $8,100 Indirect materials used $6,750 $4,275 Lease on equipment $14,625 $3,375 Utilities $900 $1,125 Required: (A) What is the budgeted indirect cost allocation rate for each department? (B) What is the total cost assigned to Job 478
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