Use the information below to answer the following question(s).
Crabtree Ornaments Company uses job costing. Crabtree Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labour cost in the Trimming Department and direct labour hours in the Finishing Department. The following additional information is available:

Actual data for completed Job No. 650 is as follows:

-What is the total manufacturing overhead cost for Job No. 650 at Crabtree Ornaments Company?

Question

Use the information below to answer the following question(s).
Crabtree Ornaments Company uses job costing. Crabtree Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labour cost in the Trimming Department and direct labour hours in the Finishing Department. The following additional information is available:
  
Actual data for completed Job No. 650 is as follows:
 
-What is the total manufacturing overhead cost for Job No. 650 at Crabtree Ornaments Company?

Quizplus · Accepted Answer

To calculate the total manufacturing overhead cost for Job No. 650, we need to find the manufacturing overhead allocated to both the Trimming and Finishing departments.
For the Trimming Department, the manufacturing overhead allocated is 40% of direct labour cost, which is $44,800 (i.e., $112,000 x 40%). 
For the Finishing Department, manufacturing overhead allocated is $8.50 per direct labour hour, which is $37,350 (i.e., 4,400 x $8.50).
Therefore, the total manufacturing overhead allocated to Job No. 650 is $82,150 (i.e., $44,800 + $37,350) and the best choice is B.

Use the Information Below to Answer the Following Question(s)