The following information is available on departmental overhead recovery rates for Major Manufacturing:
$\begin{array}{ll}
\text { Machining Department } & \$ 47.50 \text { per machine hour } \
\text { Assembling Department } & \$ 16.90 \text { per direct labour }
\end{array}$
How much overhead will be applied to job X 123 if it uses 13 machine hours and 20 direct labour hours?

Question

Quizplus · Accepted Answer

The overhead for job X 123 is calculated by multiplying the machine hours and direct labour hours by their respective rates: (13 machine hours * $47.50) + (20 direct labour hours * $16.90) = $617.50 + $338 = $955.50.

The Following Information Is Available on Departmental Overhead Recovery Rates