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26.07.2022 - 10:36

Maple Street 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 follow

Question:

Maple Street 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	$12 per machine hour
Finishing Department	$15 per direct labor hour

1. How much manufacturing overhead should be allocated to Job 484?

2. Assume that direct labor is paid at a rate of $26 per hour and Job 484 used $2,550 of direct materials. What was the total manufacturing cost of Job 484?

Requirement:

1. How much manufacturing overhead should be allocated to Job 484? Calculate the total manufacturing overhead for the job by using a formula for each department’s overhead amount and then adding both amounts together. First determine the formula and overhead for the Cutting Department.

	x		=	Cutting Department overhead
	x		=

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	4	5
Machine hours	9	5

Answers (1)

Beatrice April 14, 2023 в 07:52

To calculate the manufacturing overhead allocated to Job 484, we first need to determine the overhead amount for each department. For the Cutting Department: Overhead rate = $12 per machine hour Job 484 used 9 machine hours in this department Overhead amount = $12 x 9 = $108 For the Finishing Department: Overhead rate = $15 per direct labor hour Job 484 used 5 direct labor hours in this department Overhead amount = $15 x 5 = $75 Total manufacturing overhead allocated to Job 484 = $108 + $75 = $183 2. To calculate the total manufacturing cost of Job 484, we need to add the manufacturing overhead allocated in step 1 to the direct materials and direct labor cost for the job. Direct materials cost for Job 484 = $2,550 Direct labor cost for Job 484 = 4 x $26 per hour + 5 x $26 per hour = $234 Total manufacturing cost for Job 484 = $2,550 + $234 + $183 = $2,967

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