James Industries 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 $55 per machine hour, while the Sanding Department uses a departmental overhead rate of $10 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Sanding Assembly Department Department Direct labor hours 6 4 used Machine hours used 8 7 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1,200.

James Industries 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 $55 per machine hour, while the Sanding Department uses a departmental overhead rate of $10 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Sanding Assembly Department Department Direct labor hours 6 4 used Machine hours used 8 7 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1,200.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...

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