James Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing

question 171

Multiple Choice

James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 542 is $1,400.
What was the total cost of Job 542 if James Industries used the departmental overhead rates to allocate manufacturing overhead?

• A)$1,850
• B)$2,170
• C)$2,240
• D)$1,790

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Definitions:

Circulatory System

The body's system responsible for the movement of blood and lymph, carrying nutrients and oxygen to cells while removing waste products.

Oxygen

A chemical element essential for life, commonly found in the Earth's atmosphere, and a key component of water and organic compounds.

Upper Respiratory System

The part of the respiratory system that includes the nose, nasal passages, pharynx, and larynx, involved in breathing and speech.

Paranasal Sinuses

Air-filled spaces around the nasal cavity that help warm, moisten, and filter the air breathed in through the nose.