X Company has two production departments, A and B. At the start of the year, the following budgeted information is available:
Department A
- Overhead $7,700,000
- Direct labor hours 50,000
- Machine hours 110,000
- Department B
- Overhead $2,200,000
- Direct labor hours 50,000
- Machine hours 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 836 233
- Machine hours 1,040 890
- Job 222
- Direct labor hours 402 597
- Machine hours 1,240 710
Using a plantwide allocation system with machine hours as the cost driver, what is the allocation to Job 222 (round overhead rates to the nearest cent and your answer to the nearest dollar)?
A: $26,385
B: $38,258
C: $55,474
D: $80,438
E: $116,634 F: $169,120
Using a departmental allocation system with machine hours as the cost driver in Department A and direct labor hours as the cost driver in Department B, what is the allocation to Job 222 (round overhead rates to the nearest cent and your answer to the nearest dollar)?