Spritzer Company Has Two Departments: X and Y Actual Data for Job #10 Are as Follows

question 164

Essay

Spritzer Company has two departments: X and Y. Overhead is applied based on direct- labor cost in Department X and machine hours in Department Y. The following additional information is available: $\begin{array}{lll}\text { Budgeted Items } & \text { Department } X & \text { Department } Y \\\text { Direct-labor cost } & \$ 180,000 & \$ 165,000 \\\text { Machine hours } & 51,000 & 40,000 \\\text { Factory overhead } & \$ 225,000 & \$ 180,000\end{array}$ Actual data for Job #10 are as follows: $\begin{array}{lll}& \text { Department } X & \text { Department } Y \\\text { Direct materials } & & \\\text { Requisitioned } & \$ 10,000 & \$ 16,000 \\\text { Direct-labor cost } & \$ 11,000 & \$ 14,000 \\\text { M achine hours } & 5,000 & 3,000\end{array}$ Required:
a. Compute the budgeted factory- overhead rate for Department X.
b. Compute the budgeted factory- overhead rate for Department Y.
c. What is the total overhead cost of Job 10?
d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

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Definitions:

Wire Gauge

A measure of the thickness of a wire, often used in determining current capacity or electrical resistance.

Diameter

Straight line extending across the center of a circle from circumference to circumference. The diameter of a circle is two times its radius.

Potential Difference

The difference in electric potential between two points, which drives the flow of electric current in a circuit.