Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
The actual material and labor costs charged to Job #432 are as follows: Apple Valley applies manufacturing overhead costs to jobs on the basis of direct labor cost using departmental rates determined at the beginning of the year.
-Total manufacturing costs associated with Job #432 equal:
A)$55,000.
B)$65,000.
C)$70,000.
D)$75,000.

Question

Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: 
The actual material and labor costs charged to Job #432 are as follows:  Apple Valley applies manufacturing overhead costs to jobs on the basis of direct labor cost using departmental rates determined at the beginning of the year.
-Total manufacturing costs associated with Job #432 equal:
A)$55,000. 
B)$65,000. 
C)$70,000. 
D)$75,000.

Quizplus · Accepted Answer

D)$75,000 = DM $25,000 + DL $20,000 + MOH $30,000

Apple Valley Corporation Uses a Job Order Cost System and Has