X company has two production departments a and b at the


X Company has two production departments, A and B. At the start of the year, the following budgeted information is available:

Department A  

Overhead            $7,100,000

Direct labor hours            50,000

Machine hours 110,000

Department B  

Overhead            $2,200,000

Direct labor hours            60,000

Machine hours 120,000

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            768         116     

Machine hours 1,040                     900     

Job 222                                

Direct labor hours            399         630     

Machine hours 1,280                     770     

1. Using a plant wide allocation system with direct labor hours as the cost driver, what is the allocation to Job 222 (round overhead rates to the nearest cent)?

2. 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)?

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Financial Accounting: X company has two production departments a and b at the
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