Chapter 18, Problem 4CMA

Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows:

Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be:

1. a. $44.00.
2. b. $197.50.
3. c. $241.50.
4. d. $501.00.