Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $45 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments: Actual results Direct labor hours used Machine hours used Assembly Department A. $2,055 OB. $1,475 OC. $1,450 OD. $1,945 7 10 Sanding Department 3 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead?
Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $45 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments: Actual results Direct labor hours used Machine hours used Assembly Department A. $2,055 OB. $1,475 OC. $1,450 OD. $1,945 7 10 Sanding Department 3 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company
has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of
$45 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor
hour. Job 542 used the following direct labor hours and machine hours in the two departments:
Actual results
Direct labor hours used
Machine hours used
Assembly
Department
A. $2,055
OB. $1,475
OC. $1,450
OD. $1,945
7
10
Sanding
Department
3
The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200.
What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate
manufacturing overhead?
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