Sanders 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 11?
d. If Job 11 consists of 40 units of product, what is the unit cost of this job?

Question

Sanders 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 11?
d. If Job 11 consists of 40 units of product, what is the unit cost of this job?

Quizplus · Accepted Answer

The Answer of Sanders 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 11?
d. If Job 11 consists of 40 units of product, what is the unit cost of this job?

Sanders Company Has Two Departments, X and Y