Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing...
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Accounting
- Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:
| Machining | Assembly |
Direct labor-hours | 30,000 | 60,000 |
Machine-hours | 80,000 | 20,000 |
Direct labor cost | $500,000 | $900,000 |
Manufacturing overhead costs | $420,000 | $240,000 |
The accounting records of the company show the following data for Job #316:
| Machining | Assembly |
Direct labor-hours | 120 | 70 |
Machine-hours | 60 | 5 |
Direct material cost | $300 | $200 |
Direct labor cost | $100 | $400 |
What are the total manufacturing costs of Job #316? a. $880 b. $1,000 c. $715 d. $1,595 e. None of the above
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