Solved

Bond Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing

Question 31

Multiple Choice

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:  Actual results  Assembly  Department  Sanding  Department  Direct labor hours used 43 Machine hours used 95\begin{array} { | l | c | c | } \hline \text { Actual results } & \begin{array} { c } \text { Assembly } \\\text { Department }\end{array} & \begin{array} { c } \text { Sanding } \\\text { Department }\end{array} \\\hline \text { Direct labor hours used } & 4 & 3 \\\hline \text { Machine hours used } & 9 & 5 \\\hline\end{array} 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.
-
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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents