Jordan Company has two departments, X and Y. Overhead is applied based on budgeted direct labour cost in Department X, and budgeted machine hours in Department Y. The following additional information is available.

Required:
a. Compute the budgeted factory indirect cost allocation rate for Department X.
b. Compute the budgeted factory indirect cost allocation rate for Department Y.
c. What is the total overhead cost of Job 10?
d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

Question

Jordan Company has two departments, X and Y. Overhead is applied based on budgeted direct labour cost in Department X, and budgeted machine hours in Department Y. The following additional information is available.
  
Required:
a. Compute the budgeted factory indirect cost allocation rate for Department X.
b. Compute the budgeted factory indirect cost allocation rate for Department Y.
c. What is the total overhead cost of Job 10?
d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

Quizplus · Accepted Answer

The Answer of Jordan Company has two departments, X and Y. Overhead is applied based on budgeted direct labour cost in Department X, and budgeted machine hours in Department Y. The following additional information is available.
  
Required:
a. Compute the budgeted factory indirect cost allocation rate for Department X.
b. Compute the budgeted factory indirect cost allocation rate for Department Y.
c. What is the total overhead cost of Job 10?
d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

Jordan Company Has Two Departments, X and Y