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: 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.
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What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $1,375
B) $1,425
C) $1,500
D) $1,600
Correct Answer:
Verified
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