Huang Aerospace Corporation manufactures aviation control panels in two departme

Question

Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department:

Fabrication

Assembly

Machine hours...................

40

12

Direct labor hours..............      

3

25

What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year?

$1,200

$1,500

$1,560

$1,734

Fabrication

Assembly

Machine hours...................

40

12

Direct labor hours..............      

3

25

Explanation / Answer

b. $1,500

Job #X2984 Fabrication–overhead applied ($30 per machine-hour × 40 machine-hours) $1,200 Assembly–overhead applied ($12 per direct labor-hour × 25 direct labor-hours) $300 Total overhead applied to Job #X2984 $1,500

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