Bond 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 $20 per machine hour,while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour.Job 542 used the following direct labor hours and machine hours in the two departments: The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200.
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How much manufacturing overhead would be allocated to Job 542 using the departmental overhead rates?
A) $125
B) $175
C) $225
D) $245
Correct Answer:
Verified
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