Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:

The accounting records of the company show the following data for Job #316:

What are the total manufacturing costs of Job #316?
A) $1,885.00
B) $2,085.00
C) $2,485.00
D) $900.00

Question

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:

The accounting records of the company show the following data for Job #316:

What are the total manufacturing costs of Job #316?

The accounting records of the company show the following data for Job #316:

What are the total manufacturing costs of Job #316?
A) $1,885.00 
B) $2,085.00 
C) $2,485.00 
D) $900.00

Quizplus · Accepted Answer

DM $400 + DML $500 + MOH $1,585 = $2,485.00

Bauer Manufacturing Uses Departmental Cost Driver Rates to Allocate Manufacturing