Questions 4 and 5 refer to the following information: X Company has two producti
ID: 2400706 • Letter: Q
Question
Questions 4 and 5 refer to the following information: X Company has two production departments, A and B. At the start of the year, the following budgeted information is available Department A Overhead Direct labor hours Machine hours $5,200,000 40,000 120,000 Department B Overheacd Direct labor hours Machine hours $2,100,000 60,000 130,000 The following information is for two specific jobs, Job 111 and Job 222, that were completed during the year Department A Department B Job 111 Direct labor hours Machine hours 765 1,100 251 900 Job 222 Direct labor hours Machine hours 307 1,280 630 800 8 pt. Using a plantwide allocation system with direct labor hours as the cost driver, what is the allocation to Job 222 round overhead rates to the nearest cent)? 4. A? $42,708 ?$49,968 CO $58,462 DO $68,401 EO $80,029 FO $93,634 8 pt5. Using a departmental allocation system with direct labor hours as the cost driver in Department A and machine hours as the cost driver in Department B, what is the allocation to Job 222 (round overhead rates to the nearest cent)? 5. AO $52,830BO $61,811 CO $72,319 DO $84,613 EO $98,997 FO $115,827 O 4013 O 808.07 YOExplanation / Answer
total overhead Department A 5,200,000 Department B 2,100,000 total overhead 7,300,000 total direct labor hours Department A 40,000 Department B 60,000 total direct labor hours 100,000 plantwide overhead rate = 7,300,000/100,000 73 4) Allocation to Job 22 direct labor hours*plantwide overhead rate (307+630)*73 68401 option d ) is the answer 5) Departmental allocation System Department A = 5,200,000/40,000 130 per direct labor hour Department B= 2,100,000/130,000 16.15385 allocation to job 222 Department A 130*307= 39910 Department B 16.15*800= 12920 total overhead allocated to job 222 52830 answer option a) $52,830
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