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Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing...

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Accounting

  1. 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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