Splitsville Company has two departments. Factory overhead costs are applied base

Question

Splitsville Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available:

Budgeted Items Dept. A Dept. B

Direct labor cost $180,000 $165,000

Machine hours 51,000 40,000

Factory overhead cost $225,000 $180,000

Actual data for Job #10 are as follows:

Actual Items Dept. A Dept. B

Direct materials requisitioned $10,000 $16,000

Direct labor cost $11,000 $14,000

Machine hours 5,000 3,000

Required:

A) Compute the budgeted factory overhead rate for Department A.

B) Compute the budgeted factory overhead rate for Department B.

C) What is the total overhead cost for Job #10?

D) If Job #10 consists of 50 units of product, what is the unit cost of this job?

Explanation / Answer

A) divide the amounts so the answer is 125%

B) divide the amount by hours so u will get 4.50 per day

C) $1100 x 125% = $4.50x 3000 hours = $27250

D) $10000 + $16000 + $11000 + $ 14000 + $27250 = $78250/50 unite - $1565 per unit

RATE MEEEEEEE

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