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 $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Department Sanding Department Actual results Direct labor hours used 7 5 Machine hours used 6 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1,600. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? O A. $300 B. $575 OC. $475 D. $650

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 $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Department Sanding Department Actual results Direct labor hours used 7 5 Machine hours used 6 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1,600. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? O A. $300 B. $575 OC. $475 D. $650

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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