Chapter 4, Problem 4.2SE

Use departmental overhead rates to allocate manufacturing overhead (Learning Objective 1)

Whitney Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company’s two production departments have the following departmental overhead rates:

Cutting Department:	$9 per machine hour
Finishing Department:	$18 per direct labor hour

Job 484 used the following direct labor hours and machine hours in the two manufacturing departments:

JOB 484	Cutting Department	Finishing Department
Direct Labor Hours	2	7
Machine Hours	8	4

1. 1. How much manufacturing overhead should be allocated to Job 484?
2. 2. Assume that direct labor is paid at a rate of $24 per hour and Job 484 used $2,400 of direct materials. What was the total manufacturing cost of Job 484?