Calculate the cost of Job 845 using a machine hour departmental overhead rate for the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($32 per hour) and a direct hour overhead rate for the Finishing Department ($102 per hour). (Round your answer to the nearest dollar.)
Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs:
Setup (1,000 setup hours)
$118,000
Production scheduling (400 batches)
60,000
Production engineering (60 change orders)
150,000
Supervision (2,000 direct labor hours)
46,000
Machine maintenance (12,000 machine hours)
60,000
Total activity costs
$434,000
The following additional data were provided for Job 845:
Direct materials costs
$7,000
Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)