Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows:

 

	Dept. M			Dept. A
Direct materials	$	703,000		$	103,000
Direct labor		203,000			806,000
Factory overhead		609,000			403,000

 

The actual direct material and direct labor costs charged to Job. No. 432 during the year were as follows:

 

Direct material				$	28,000
Direct labor:
Department M	$	11,000
Department A		15,000			26,000

 

Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be:

a. $66,500.

b. $68,500.

c. $80,000.

d. $94,500.

Answer rating: 100% (QA)

Dept A overhead rate 609000203000 300 of direct labor cost Dept B Ove... View the full answer