Job costing ABC Company uses a job cost system and has two production departments, A...
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Accounting
Job costing
ABC Company uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
Dep. A. Dep. B
Direct material $700 000. $100 000
Direct labour $200 000 $800 000
Manufacturing overhead $600 000. $400 000 The actual material and labor costs charged to Job #4 were as follows:
Total
Direct materials: $25,000
Direct labor: Department A $ 8,000
Department B $12,000
$ 20,000
Company applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.
Calculate For Department A, the manufacturing overhead allocation rate. For Department B, the manufacturing overhead allocation rate Total manufacturing overhead costs allocated to Job #4
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